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A Roth IRA can be a more flexible way forward.

A Roth IRA is a retirement account with flexibility. Contributions are made with after-tax money. This gives you access to your contributions (tax-and penalty-free) at any time, while earnings may be withdrawn federally tax-free, under certain conditions.*

A Roth IRA can supplement your retirement plan, allowing you access to your funds for life’s twists and turns.

How might a Roth IRA work for you? Select a personality below and explore possible options.

Family Planner

Family Planner

You may be married or already have a ring picked out. Sure, you’ll retire together but first, you’re thinking about future family goals like homeownership or watching your little athletes score the game-winning point. Those kids (or future kids) may be college bound, and you want to help pay their way before settling down for retirement.

Contributions can be withdrawn tax- and penalty-free for home buying expenses, such as down payments. For first-time home buyers, earnings can be withdrawn up to a $10,000 (lifetime limit per person) tax-free if your account is at least 5 years old. Otherwise, earnings are subject to taxes but not the early withdrawal penalty before age 59 ½.
Thinking about starting a family? A Roth IRA may be a place to save for retirement and as needs crop up. Any distributions beyond your contributions will be subject to federal income tax and the early withdrawal penalty.
Higher education costs may be one reason to withdraw funds. Your contributions can be withdrawn tax- and penalty-free at any time. For qualifying education expenses, if you dip into your earnings before age 59 ½, this portion of your distribution may be taxable, but it won't be subject to the early withdrawal penalty.
A Roth IRA can help you work toward your retirement goals. At 59 ½ years old, funds can be withdrawn tax- and penalty-free as long as your account is at least 5 years old. There are no required minimum distributions. So, you can take out what you need and let the rest keep growing.
Career Climber

Career Climber

You may be an up-and-comer but you mean business. Retirement matters to you but not at the expense of tying your money down. You may want the flexibility to chase a cross-country career move, satisfy your wanderlust, or pursue entrepreneurial endeavors like that cozy, corner café or tech startup.

A new job opportunity may come with some unexpected expenses such as relocation. Contributions can be withdrawn tax- and penalty-free if you need. Any distributions beyond your contributions will be subject to federal income tax and the early withdrawal penalty if you are under age 59 ½.
Contributions can be withdrawn tax- and penalty-free for home buying expenses, such as down payments. For first-time home buyers, earnings can be withdrawn up to a $10,000 (lifetime limit per person) tax-free if your account is at least 5 years old. Otherwise, earnings are subject to taxes but not the early withdrawal penalty before age 59 ½.
You may want to use your funds to cover unexpected medical costs. Your contributions can be withdrawn tax- and penalty-free at any time. For qualifying medical expenses, if you withdraw the earnings before you are 59 ½, this portion of your distribution may be taxable but won't be subject to the early withdrawal penalty.
A Roth IRA can help you work toward your retirement goals. At 59 ½ years old, funds can be withdrawn tax- and penalty-free as long as your account is at least 5 years old. There are no required minimum distributions. So, you can take out what you need and let the rest keep growing.
Go Getter

Go-Getter

You may have lofty goals but you’re making progress. Whether you pursue knowledge or tackle projects head on, you demand the flexibility to make the most of your money to help you see them through. But as much as you live for today, you want to be prepared for retirement and tomorrow’s challenges.

You may be a beneficiary of a Roth IRA. While you are required to take distributions, as long as the account is at least 5 years old before making withdrawals, they can be made tax- and penalty-free. Beneficiary options are covered in the Roth IRA custodial agreement.
A Roth IRA may be a place to save for retirement. But, if a once-in-a-lifetime opportunity arises, you have the flexibility to decide to withdraw your contributions to pursue it. Remember to evaluate your overall retirement plan. Any distributions beyond your contributions will be subject to federal income tax and the early withdrawal penalty if you are under age 59 ½.
A Roth IRA may be a place to save for traveling in retirement. But, if unexpected travel needs arise, you could withdraw your contributions to cover it. Any distributions beyond your contribution will be subject to federal income tax and the early withdrawal penalty if you are under age 59 ½.
A Roth IRA can help you work toward your retirement goals. At 59 ½ years old, funds can be withdrawn tax- and penalty-free as long as your account is at least 5 years old. There are no required minimum distributions. So, you can take out what you need and let the rest keep growing.

Have questions? Here are the most frequently asked.

A Roth IRA is a retirement account with flexibility. Contributions are made with after-tax money. This gives you access to your contributions (tax-and penalty-free*) at any time, while earnings may be withdrawn federally tax-free, under certain conditions.

A Roth IRA can supplement your retirement plan, allowing you accessto your funds for life’s twists and turns.

What is a Roth IRA?

A Roth IRA is an individual retirement account to which you make contributions with money on which you’ve already paid taxes. With a Roth IRA you have the potential to take tax-free withdrawals of earnings in retirement.

How is a Roth IRA different than a Traditional IRA?

Roth IRA contributions are made after-tax, allowing for “qualified distributions” that are tax and penalty-free. In contrast, contributions to a Traditional IRA can be made pre-tax (with tax deduction limitations) and grow tax-deferred until distribution. For complete information, read: Traditional IRA vs. Roth IRA: Which is right for you?

Who may want to consider a Roth IRA?

Investors who:

  • Have earned income
  • Expect to be in a higher tax bracket in retirement.
  • Would benefit from federal tax-free distributions of earnings in the future.
  • Don’t want to be subject to Required Minimum Distributions.
  • Want the flexibility to withdraw contributions at any time.

Does Thrivent Mutual Funds require minimum investments?

  • $1,000 per Thrivent mutual fund without recurring contributions.
  • Or, $50 monthly recurring contribution for all Thrivent mutual funds except for the Thrivent Money Market Fund or Thrivent Limited Maturity Bond which are $100 per month.

What are the contribution rules for Roth IRAs?

  • 2018: $5,500 total per year; $6,500 if you’re age 50 or older.
  • No age limit to open or contribute to a Roth IRA.
  • Contribution amounts may be reduced or you may be ineligible to contribute if your earned income exceeds certain limits. See IRS Contributions and Deduction Limits or IRS Publication 590 for further details.
  • Contributions aren’t tax deductible.

Are there any fees specific to a Thrivent Mutual Funds Roth IRAs?

  • Annual IRA custodial fee is $15 per shareholder (traditional, SEP and Roth IRAs combined). Fee may be waived if you have $50,000 or more invested in Thrivent Mutual Funds or have a recurring purchase plan.
  • Semiannual low balance fee of $10 may apply for those accounts not maintaining minimum balance requirements. See the Prospectus for more information.
  • IRA account closeout fee of $20.
  • Other fees may apply for certain services and are redeemed directly from your account. Examples include overnight delivery or wire fees.
  • For fees and expenses related to a Thrivent Mutual Fund used for a Roth IRA, see the Prospectus.

How do Roth IRA distributions work?

  • The earnings portion of non-qualified distributions are subject to federal income tax and if taken before age 59 ½ may also be subject to the 10% early withdrawal penalty unless an exception applies.
  • No required minimum distributions during the owner's lifetime; however, beneficiaries must take required minimum distributions similar to Traditional IRAs.
  • Qualified distributions are free from federal income tax (see section on Qualified Distributions). In addition, contributions (principal) can be withdrawn tax- and penalty-free at any time.

What are qualified distributions?

  • Qualified distributions are not subject to federal income tax. State tax treatment varies.
  • Check with your tax advisor for more information.
  • A distribution is qualified if it meets the following criteria:
    • It has been at least 5 years from the beginning of the year the first Roth IRA contribution was made; AND
    • You reach age 59 ½, you are buying your first home ($10,000 limit), you are disabled, or the distribution is made to the beneficiary of the IRA.
    • This same distribution period applies to Roth IRA Conversions.

What are early withdrawal penalty exceptions?

  • You may not have to pay the 10% additional penalty tax on the taxable portion of a non-qualified distribution in the following situations:
  • You are at least 59 ½.
  • You are totally and permanently disabled.
  • You are the beneficiary of a deceased IRA owner.
  • You are buying or building your first home ($10,000 lifetime limit).
  • You have unreimbursed medical expenses that are more than 7.5% of your adjusted gross income for the year.
  • You are unemployed and paying medical insurance premiums.
  • The distributions are used to cover qualified higher education expenses, but the distribution must not exceed the total qualified expenses.
  • The distribution is due to an IRS levy of the qualified plan.
  • The distribution is a qualified reservist distribution.

What are the ordering rules for Roth IRA distributions?

If you take a distribution from your Roth IRA that is not a qualified distribution, part of it may be taxable. There is a set order that contributions, conversions and earnings are considered to be distributed from your Roth IRA. If you have multiple Roth IRAs, they are aggregated together for ordering purposes. The order is:

  1. Contributions.
  2. Roth IRA conversions and rollover contributions from other types of retirement accounts on a first-in, first-out basis. The taxable portion of the conversion/rollover is first, followed by the nontaxable portion.
  3. Earnings.

Curious how a Roth IRA fits your life goals?

Take a deeper look into its benefits for today and tomorrow, along the road to retirement.

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* We suggest that you talk with your tax advisor for any tax treatment questions on Roth IRA contributions and distributions, including any possible state income taxes. Thrivent and its employees and representatives cannot provide tax advice.