Roth IRAs
The Roth IRA offers unique and exciting savings opportunities. Not only can it help with retirement needs, but also a first-time home purchase or other financial goals. This flexibility makes the Roth IRA appealing to many different age and income groups.
Who can contribute?
Anyone who has income from compensation or who is filing jointly with a spouse who earns compensation with the following MAGI*:
- Up to $120,000 – $135,000 for single filers
- Up to $189,000- $199,000 for joint filers
* MAGI – modified adjusted gross income from your federal tax return
How Much Can I Contribute?
| Roth Aggregate Annual Regular Contribution Limits | ||
|
PLAN NAME
|
Standard Limit
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Additional “Catch-up” Contribution for Owners Age 50 and Older
|
|
Roth*
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$5,500
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$6,500
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*Modified AGI Limits: 2018 Single: $120,000 – $135,000 Married Filing Jointly: $189,000 – $199,000
* 2018 Traditional & Roth IRA Contribution Deadline is 4/15/2019.
- Cannot exceed compensation
- Reduces contributions that can be made to Traditional IRAs
Are Contributions Tax Deductible?
No
What are the tax advantages?
After the account has been opened for five tax years, earnings can be withdrawn tax and penalty free for any of these reasons:
- Disability
- Death
- First-time home purchase**
- Age 59 ½
**Lifetime limit for exemption on first-time home purchase is $10,000
When can I withdraw without restrictions?
Earnings are tax-free if account is open five tax years and withdrawn for a qualified reason.
Not required to start withdrawals at age 70 ½.
