Roth Individual Retirement Accounts (IRAs)

Ensuring financial security in retirement is one of the greatest challenges facing Americans today. For self-employed or those whose employer does not offer a retirement plan, a Roth IRA can be an easy way to save for retirement. They offer a way to invest after-tax dollars and let money grow over time.

Tax Benefits

• Money you contribute (deposit) to a Roth IRA has already been taxed. This means the money is not subject to future taxes as long as you stay within Roth guidelines and that contributions cannot be claimed as a tax deduction.
• Earnings on a Roth IRA are tax free for qualified withdrawals, generally after age 59½ and your account has been open for at least five years.
• Contributions (not earnings) can be withdrawn tax free.

Ways to Save

• You can begin savings on your own, without the need for an employer-sponsored plan.
• ESL offers two savings options for a Roth IRA – certificates or Money Maker savings accounts.
• Roth IRA funds from another financial institution can be transferred to ESL. Rollovers from 401(k) plans are not permitted into a Roth IRA.
• You can convert funds from a Traditional IRA into a Roth IRA. Taxes may apply.

Contributions and Opening Requirements

• Contributions can be made at any age.
• To open an account, you need earned income that is equal to or greater than your contribution.
• If you are under age 50, you can contribute up to $7,000 for 2024. For those over age 50, a maximum contribution of $8,000 is permitted within the year.
• Eligibility to open a Roth IRA depends on modified adjusted gross income and income tax filing status.
• Contributions can be made at any time in the year up to the maximum allowed.

Savings Options

• IRA Money Maker Account
  • No minimum balance required.
  • Access your funds as you need them to move between Roth IRA accounts or qualified retirement investments or for distributions.
  • Learn more about ESL Money Maker Accounts.
• IRA Certificate Accounts
  • $100 minimum balance for a non-jumbo certificate.
  • $100,000 minimum balance for a jumbo certificate.
  • Terms from 31 days to 120 months.
  • Money in a certificate account is not available until your certificate maturity date, otherwise penalties apply.
  • Learn more about ESL Certificate Accounts.

Qualified Distributions (Withdrawals)

A qualified distribution means that you will not be charged the IRA 10% early distribution penalty.  

Qualified Distributions are available for accounts held for five years or more and any one of the following:

• After age 59½  
• Death
• Disability
• First home buyer purchase

Each of these circumstances is unique and you should consult your tax advisor to learn more.

It’s easy to open a Roth IRA Certificate or Money Maker Account at ESL:

• Connect with us so we can help.
• Are you a new member? Be prepared with the documentation needed to open an account. Learn more >

We look forward to helping you take advantage of one of the best retirement savings vehicles around.