Individual Retirement Accounts-Roth IRAs

Roth IRAs

Roth IRA Contribution Limits—2016
Lesser of: Taxable compensation for the year, or:
Under age 50………………………………………………………………………. $ 5,500
Age 50 or older……………………………………………………………………. $ 6,500

What is a Roth IRA?
A Roth IRA is an individual retirement arrangement. It is a personal savings plan that gives you tax advantages for setting aside money for retirement. An account must be designated as a Roth IRA when opened. Roth IRA tax advantages and rules compared to a traditional IRA:

• Contributions are not deductible. Active participation in an employer plan is irrelevant.
• If certain requirements are satisfied for qualified distributions, distributions are tax free.
• Can withdraw contributions any time for any reason without owing taxes or penalties.
• Contributions can be made after the participant reaches age 70½.
• The required minimum distribution (RMD) rules do not apply. Distributions are not required until death of the participant.
• Contributions are not allowed when modified adjusted gross income (MAGI) is above certain limits
• Neither a SEP IRA nor a SIMPLE IRA can be set up as a Roth IRA

Click and Read 2016 Individual Retirement Accounts Roth IRAs Here

Who Can Contribute to a Roth IRA?
Generally, you can contribute to a Roth IRA if you have taxable compensation and income less than the top of the phase-out range for your filing status, see Roth IRA
Phase-outs chart, in link below..

Click and Read 2016 Individual Retirement Accounts Roth IRAs Here

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