With a Roth IRA, you make contributions with money on which you’ve already paid taxes. Your money can then potentially grow tax free, with tax free withdrawals in retirement, provided that certain conditions are met.
Contribution limits1 for 2019 are as follows:
- Age 49 and under: $6,000
- Age 50 and above: $6,000 + $1,000 catch-up
- Age 49 and under: $5,500
- Age 50 and above: $5,500 + $1,000 catch-up
|Not taxed at withdrawal|
|Earnings grow federally tax free|
|No age limit|
|Must have employment compensation|
|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 tax return filing deadline for 2019 is April 15. Refer to IRS Publication 590 for details.