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Roth IRA (Individual Retirement Accounts) |
The Roth IRA is an Individual Retirement Account that was created through the Taxpayer Relief Act of 1997 to provide an alternative for traditional nondeductible IRAs. The Roth IRA allows after-tax contributions with the potential for tax-free income in retirement.
Plan Features
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All wage earners, regardless of age, may contribute to a Roth IRA each year
- All contributions are nondeductible
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Earnings may be withdrawn, penalty and income tax-free, if held for five years and the individual satisfies a triggering event.
Eligibility
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Must earn wages for services rendered as an employee or as a self-employed person during the tax year and must not have a modified adjusted gross income greater than:
1) $95,000 for single person: contribution is phased out between $95,000 and $110,000
2) $156,000 for married joint filers: contribution is phased out between $156,000 and $166,000
Contribution Limits:
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The lesser of 100% of compensation or $4,000
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Individuals age 50 or older by December 31 may make an additional catch-up contribution of $1,000
Deadlines:
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Individuals may contribute to an IRA up until the individual tax return of April 15
Distributions:
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There are no requirements to take any distributions during the individual
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Securities and Investment Advisory Services offered through Woodbury Financial Services, Inc.,
Member FINRA, SIPC, and Registered Investment Advisor - Licensed in MO, IL, CA, NY
*** 111 West Port Plaza Drive Suite 300 Saint Louis, MO. 63146 ***
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