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 |
Earnings grow federally tax-free.1 |
|
Withdrawals |
Tax-free withdrawals1 No minimum required distributions (MRDs) during the lifetime of the original owner |
|
Eligibility |
No age limit1 Must have employment compensation |
|
IRA maximum contribution |
2016 and 2017: $5,500 ($6,500 if age 50 or older) |
Roth IRA modified adjusted gross income (MAGI) phase-out ranges
These income ranges represent the partial contributions that you are able to make to a Roth IRA.
|
2016 |
2017 |
|
|
Single Individuals |
$117,000 - $132,000 |
$118,000 - $133,000 |
|
Married, filing joint tax returns |
$184,000 - $194,000 |
$186,000 - $196,000 |
|
Married, filling separately |
$0 - $10,000 |
$0 - $10,000 |
*Note: it is recommended to contact your accountant to apply these phase-out ranges to your particular situation.
1 – It is important to contact your accountant to determine how a Roth IRA can be applied to your situation.
