Roth

WHO CAN CONTRIBUTE?

  • Married couples filing a joint tax return with MAGI up to $150,000.
  • Single tax filers with MAGI up to $95,000.
  • Couples and single tax filers with higher incomes may be eligible for reduced contributions.

HOW MUCH CAN I CONTRIBUTE?

  • Total combined contributions to Roth and Traditional IRAs up to $2,000 per year or 100% of compensation, whichever is less.

WHO CAN MAKE DEDUCTIBLE CONTRIBUTIONS?

  • No one can deduct contributions.

WHAT ARE THE TAX ADVANTAGES?

  • Contributions can be withdrawn tax-free and penaly-free anytime.
  • Earnings can be withdrawn tax-free and penalty-free for any of these reasons after the account has been open five tax years:
    1. after age 59 1/2.
    2. if you become disabled.
    3. for first-time home purchase.
  • Withdraw earnings penalty-free for the same reasons as those for penalty-free withdrawals from Traditional IRAs (withdrawal is subject to taxes).
CAN I WITHDRAW FROM THE ACCOUNT?
  • Earnings tax-free if account is open for five tax years and withdrawn for a qualified reason.