With a Roth IRA, you make contributions with money on which you've already paid taxes. Your money can then potentially grow tax-free, with tax-free withdrawals in retirement, provided that certain conditions are met.1
Earnings grow federally tax-free1
No minimum required distributions (MRDs) during the lifetime of the original owner
No age limit1
Must have employment compensation
IRA maximum contribution
2013 and 2014: $5,500 ($6,500 if age 50 or older)
Roth IRA modified adjusted gross income (MAGI) phase-out ranges
These are the income ranges in which you are eligible to make a partial contribution to a Roth IRA.
|Single individuals||$59,000 - $69,000||$60,000 - $70,000|
|Married, filing joint tax returns||$95,000 - $115,000||$96,000 - $116,000|
|Married, filing separately||$0 - $10,000||$0 - $10,000|
*Note: We recommend that you talk to your accountant about how these ranges apply to your particular situation.
1 – It is important to talk to your accountant to determine how a Roth IRA can be applied to your situation.