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Save for your retirement now and watch your nest egg grow tax-free with a Roth IRA. You’ll also enjoy tax-free withdrawals in retirement. As long as your annual income doesn’t exceed the limits set by the IRS, you can open and contribute to your Roth retirement account.

What is a Roth IRA?

Contributions to your Roth IRA are from post-tax dollars. The advantage is that your balance will grow tax-free and your withdrawals in retirement are also untaxed. There are also certain circumstances, such as buying a home, when you may be able to make early withdrawals without penalty.

The features of a Roth IRA include:

  • Income limits to be eligible to open Roth IRA3
  • Contributions are NOT tax deductible
  • Earnings are 100% tax free at withdrawal1
  • Principal contributions can be withdrawn without penalty1
  • Withdrawals on interest can begin at age 59 ½
  • Early withdrawals on interest subject to penalty2
  • No mandatory distribution age
  • No age limit on making contributions if you have earned income

How Does a Roth IRA differ from a Traditional IRA?

There are advantages to both traditional and Roth IRAs. One of the biggest differences is the time at which you see the most advantage. A Roth IRA has the potential for the most tax savings in retirement, while a Traditional IRA provides tax advantages now.

Roth IRA Requirements and Limits

  • No Required Minimum Distributions during your lifetime
  • No age limit for contributions
  • Can have a Roth in addition to a 401(k) or 403(b)
  • No taxes on beneficiaries who inherit your Roth
  • Your contribution is reduced or phased out if you fall within a certain income range
  • Annual contribution limit set by the IRS
  • Additional catch-up contribution permitted for people age 50 and older

If your income exceeds the limits for a Roth, you can still open a Traditional IRA.

Open A Roth IRA!

West Shore Bank has been Making a Difference Since 1898. For over a century, West Shore Bank has have remained committed to helping the people and businesses along the lakeshore to improve their financial well-being. Visit one of our nine locations in Ludington, Frankfort, Hart, Manistee, Onekama, Scottville, or Traverse City.

Apply now to open a Roth IRA account in Michigan!


1 Subject to some minimal conditions. Consult a tax advisor.
2 Certain exceptions apply, such as healthcare, purchasing first home, etc.
3 Consult a tax advisor.