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A Roth IRA is a retirement plan where contributions are not tax-deductible, but withdrawals are tax free. The advantage over a traditional IRA is that there are typically fewer withdrawal restrictions and requirements.
Who can contribute?Anyone with an earned income can contribute as long as their income does not exceed modified adjusted gross income limits.
Are there contribution limits?For 2013, workers under the age of 50 can contribute up to $5500 of their earned income. For workers 50 or older, the maximum contribution is $6500.
Is there a contribution deadline?
Contributions to your Roth IRA account must by made by April 15th in order to qualify for a prior year contribution.
To learn more about retirement strategies or for a free second opinion, Contact Us.
Disclosure: A Roth IRA distribution is qualified if you've had the account for at least five years and/or the distribution is made after you've reached the age of 59½, because of your total and permanent disability, in the event of your death or first-time homebuyer expenses. Distributions made prior to the age of 59½ may be subject to federal income tax penalty. We suggest that you discuss tax issues with a qualified tax advisor.