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THE ROTH IRA
Contributions may be made for the current year only.
Available to individuals with income to $95,000.00 and couples filing jointly with income to $150,000.00. (Contributions are phased out between $95,000.00 and $110,000.00 for individuals, between $150,000.00 and $160,000.00 for joint filers, and between $0.00 and $10,000.00 for those married filing separately.
No age limit , but must have earned income to contribute.
Combined contributions to Roth and Traditional IRAs limited to $2,000.00 per person per year.
All contributions are nondeductible.
Earnings may be withdrawn tax-free if account open for 5 years and the owner is age 59 ½, disabled, deceased, or buying a first home.
A 10% tax on early distributions applies to earnings, with the same exceptions as for traditional IRAs.
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