A Roth IRA is a retirement planning option. The Roth IRA offers non-deductible contributions to eligible individuals. Distributions are received income tax-free if requirements are met. A Roth IRA is open to any Individual with earned income and whose modified adjusted gross income is within specific limits. Contributions are not deductible. Maximum contributions depend upon the individual's modified adjusted gross income. A withdrawal of earnings before age 59 1/2 are generally subject to both income tax and a 10% penalty, except in special situations. However, Roth IRA contributions may be distributed at any time for any reason without incurring income tax or a penalty. Distributions are not mandatory at any age.
A Roth IRA account must be set up and contributions must be made by April 15th to qualify as a contribution for the previous year. There is no maximum contribution age. If there is earned income, an individual of any age can contribute.
If you have any questions about Roth IRAs, Jeff, at Richard Financial Resources, LLC can help you find the answers.