First Choice Community Credit Union
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Roth IRAs  

Image of a toy man figurine standing on an IRS 1040 form As in the traditional IRA, the earnings of a Roth are tax-free while they accumulate. However, contributions to a Roth IRA are not tax-deductible, while qualified withdrawals are tax-free. For some investors, the inability to deduct their contributions is a tiny price to pay for tax-free withdrawals that could be quite substantial after years of having grown in an account. You may want to contact a tax or investment professional to determine if a Roth IRA is right for your investment/retirement situation.

How to Open/Contribute to a Roth IRA

First Choice offers two Roth IRA account options: share accounts and share certificates. A share account requires a minimum opening deposit of $50. Share certificates require a minimum $1,000 deposit and can be acquired in 6-month, 12-month, 18-month, 24-month and 36-month terms. All IRA contributions must be in the form of cash, according to IRS regulations. If you already have an IRA at another financial institution, you can have those funds re-deposited in an FCCCU IRA via a transfer or 60-day rollover.


The maximum amount one individual can contribute to his or her Roth IRA each year is $5,000. The maximum amount a married couple filing taxes jointly can contribute is $10,000 per year ($5,000 per account). You may contribute to both a traditional IRA and a Roth IRA, as long as the combined total put into both accounts does not exceed $5,000. If you are married and filing jointly, the combined total may not exceed $10,000, $5,000 in each account.

The rules governing the taxability and applicability of penalties associated with distributions and withdrawals from Roth IRAs are quite complicated. You should consult a tax professional regarding distributions and withdrawals.