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Roth IRA Accounts

 

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.

 

Benefits

  • Earnings grow tax-free
  • Tax-free withdrawals
  • No required minimum distributions
  • Contributions are protected from creditors
  • Can be set up with another retirement plan

 

Advantages

Eligibility
  • No age limit
  • Must have earned income
2019 & 2020 Contributions
  • After tax contributions grow tax and penalty free with a maximum contribution of $6,000 ($7,000 if age 50 or older)
Earnings
  • After age 59 1/2 earnings can grow tax-free and penalty-free if the account has been open at least 5 years
Withdrawals
  • Tax-free and penalty free withdrawals at any age
  • No Required Minimum Distributions (RMDs) during the lifetime of the original account owner
Funding Your Account
  • Use earned income
  • Rollover funds from a 401(k)
  • Transfer an IRA
  • Convert a Traditional IRA to a Roth IRA