Roth IRAs are another way of saving for retirement using after-tax dollars to make contributions.
Contribution limits1 for 2013 are as follows:
- Age 49 and under: $5,500
- Age 50 and above: $5,500 + $1,000 catch-up
- Age 49 and under: $5,000
- Age 50 and above: $5,000 + $1,000 catch-up
- Not taxed at withdrawal
- Not required to begin taking distributions at age 70 1/2
1 Contribution limits based on modified annual gross income (modified AGI). Refer to IRS Publication 590 for details.
2 The usual tax return filing deadline for 2013 is April 15. Refer to IRS Publication 590 for details.