Roth IRA Account

Unlike the traditional IRA, contributions to the Roth IRA are considered “after-tax” and therefore not deductible, but you can take distributions from the Roth IRA tax-free. The maximum annual contribution to the Roth IRA for 2017 is $5,500, with an additional $1,000 “catch up” contribution allowed each year for individuals age 50 and older (as of December 31 of the tax year to which the contribution relates).

The Roth IRA became an option after the Taxpayer Relief Act of 1997, and allows for investors filing single on their taxes with a modified adjusted gross income in 2017 of less than $133,000 or married couples filing jointly with a combined adjusted gross income of less than $196,000 annually, to make limited, annual contributions toward retirement. There is no mandatory age at which you are required to take distributions from the Roth IRA, and there is no premature distribution penalty for amounts you withdraw from the principal.

CRN201903-208966