Please be advised you are now leaving the Northern Funds section and being directed to a site maintained by Northern Trust. Please click OK to continue.
Northern Trust Logo

Roth IRA


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

  • Nondeductible, after-tax contributions
  • Tax-free earnings growth and tax-free distributions at retirement
  • Maximum annual contribution of $5,500 ($6,500 if age 50 or older), or up to 100% of earned income, whichever is less
  • Distributions not required at age 70½
  • No age limits on contributions

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:

  • You are at least age 59½; or
  • You become disabled or pass away; or
  • You use the money for a first-time home purchase (subject to a lifetime maximum of $10,000)

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

You could lose money by investing in the Money Market Funds. Although each of the Money Market Funds seeks to preserve the value of your investment at $1.00 per share, it cannot guarantee it will do so. The Funds’ sponsor has no legal obligation to provide financial support to the Funds, and you should not expect that the sponsor will provide financial support to the Funds at any time.

The Money Market Fund and the Municipal Money Market Fund may impose a fee upon the sale of your shares or may temporarily suspend your ability to sell shares if the Fund’s liquidity falls below required minimums because of market conditions or other factors.

An investment in a Fund is not a deposit of a bank and is not insured or guaranteed by the Federal Deposit Insurance Corporation (“FDIC”), any other government agency, or The Northern Trust Company, its affiliates, subsidiaries or any other bank.

Please carefully read the summary prospectus or prospectus and consider the investment objectives, risks, charges and expenses of Northern Funds before investing. Call 800-595-9111 to obtain a summary prospectus or prospectus. The summary prospectus and prospectus contain 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.

©2020 Northern Funds | Northern Funds are distributed by Northern Funds Distributors, LLC, not affiliated with Northern Trust.