Roth IRA With no age limit, invest for as long as you’re working!

Additional Information

To open, you must be working. Plus, your modified adjustable gross income must be less than $153,000 for single taxpayers and $242,000 for married taxpayers filing jointly.

If you are 50 years of age or above, you may make additional contributions of $1,100 per year.

You may make an annual contribution up to $7,500 or 100% of earned income, whichever is less. The contribution is coordinated with Traditional IRA contributions to ensure the limit is not exceeded.

Contributions are not tax-deductible.

Interest earnings are tax-free in most cases.

*Distributions are tax-free as long as the IRA has been open for five years and one of the following applies: the withdrawals occur after age 59½; the IRA owner dies or becomes disabled; or, up to $10,000 of the withdrawal is used for a qualified first home purchase. Distributions that do not meet these requirements may be taxable and subject to an IRS 10% premature distribution penalty.

Distributions may be used for qualified higher education expenses if the IRA has been open for five years. Earnings are taxable, but the distribution would not be subject to an IRS 10% premature distribution penalty.

There is no age requirement for beginning distributions.