Roth IRA+

Who can contribute?

Anyone who has income from compensation (or who is filing jointly with a spouse who earns compensation), with the following MAGI*:

  • $117,000 - $132,000 for single filers
  • $184,000 - $132,000 for joint filers
  • $10,000 for married individual filing a separate income tax return.

How much can I contribute?

  • $5,500 for 2016
  • $6,500 for 2016 for owners age 50 and older

Who can make deductible contributions?

  • No one can deduct contributions.

What are the tax advantages?

  • Earnings are tax-free if account is open for five tax years and withdrawn for a qualified reason (age 59 1/2, disability, death, or a first time home purchase).
  • Not required to start withdrawals at age 70 1/2.

When can I withdraw without restrictions?

  • Regular contributions can be withdrawn tax-free and penalty-free at any time.
  • After the account has been open five years, earnings can be withdrawn tax-free and penalty-free for any of these reasons: age 59 1/2, disability, death, and a first time home purchase**.

Not intended as tax advice. Please consult a tax professional. *MAGI - Modified Adjusted Gross Income from the federal tax form **Lifetime limit for exemption on first-time home purchase is $10k *** Formerly known as the Education IRA

+Saver's Tax Credit
The income limits associated with the income tax credit for IRA contributions and salary deferrals in retirement plans, which taxpayers calculate and claim on Form 8880, Credit for Qualified Retirement Savings Contributions, have increased. Eligibility for this tax credit is based on the individual’s age, adjusted gross income, student status, status as a dependent, and tax return filing status. The adjusted gross income limits are subject to cost-of-living adjustments. The 2016 maximum income limits for tax credit eligibility are $61,500 for joint filers, $46,125 for head of household, and $30,750 for all other filing statuses.

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