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- Contributions can be withdrawn tax-free and penaly-free anytime.
- Earnings can be withdrawn tax-free and penalty-free for any of these reasons after the account has been open five tax years:
- after age 59 1/2.
- if you become disabled.
- 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).
- Earnings tax-free if account is open for five tax years and withdrawn for a qualified reason.