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Like a Traditional IRA, the Roth IRA offers investors a way to set aside up to $5,500 annually for retirement. Unlike a traditional IRA, contributions to a Roth IRA are never tax deductible. However, a Roth IRA provides a unique advantage: The potential for tax-free income in retirement.
Roth IRA at a glance
Are you eligible?
If you have earned income below $116,000 (single filers) or $183,000 (married, filing jointly) for 2015, you may contribute up to $5,500 (or 100% of your earned income, whichever is less) a year to a Roth IRA, regardless of your age and whether or not you are an active participant in an employer-sponsored retirement plan. You may also contribute to a Roth IRA for your non-earning spouse if you file a joint return and you and your spouse meet certain compensation and income limits.
Are your contributions deductible?
Contributions to a Roth IRA are not deductible and must be made with after-tax dollars.
How long can you contribute?
You may contribute to your Roth IRA for as long as you want, provided you have earned income below $116,000 (single filers) or $183,000 (married, filing jointly).
What about withdrawals?
Since Roth IRA contributions are made with after-tax dollars, you may withdraw your contributions at any time tax and penalty-free. You may withdraw your investment earnings tax-free if you have held the account for at least five taxable years, beginning with the first taxable year for which you made a contribution and:
All other withdrawals will be subject to federal income tax and a possible 10% early withdrawal penalty.
Not FDIC insured | May lose value | No bank guarantee
An investment in Northern Funds is not insured by the FDIC, and is not a deposit or obligation of, or guaranteed by The Northern Trust Company or any affiliate. An investment in Northern Funds involves risks, including possible loss of principal.
Please carefully read the prospectus and summary prospectus and consider the investment objectives, risks, charges and expenses of Northern Funds before investing. Call 800-595-9111 to obtain a prospectus and summary prospectus, which contains this and other information about the funds.
Shares of the Northern Funds are offered only by a current Prospectus and are intended solely for persons to whom shares of US registered funds may be sold. This site shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of shares of the Northern Funds in any jurisdiction in which such offer, solicitation or sale would be unlawful.
©2017 Northern Funds | Northern Funds are distributed by Northern Funds Distributors, LLC, not affiliated with Northern Trust.