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IRAs (Traditional, Roth and Coverdell Education Savings Accounts)

Roth IRAs

  • No age requirement to make contributions, but IRA owner must be earning compensation or filing taxes jointly with a spouse who earns compensation.
  • To make regular contributions, owner must fall within income guidelines. 
  • Earnings may be tax-free if owner has met certain requirements.*
  • Qualified Distributions (or withdrawals) are considered tax and penalty- free transactions if treated as a return of the owner’s regular contributions or if the distribution meets certain conditions.* 
  • Contributions are not tax deductible.* 
  • Contributions for the previous year may be made up to tax filing day of the current year. 
  • Contribution limits are determined by tax year, filing status and income level, as well as participation in other plans, however owners age 50 and over may be eligible to make additional “catch-up” contributions. 
  • The IRS does not enforce a Required Minimum Distribution (RMD) against Roth IRAs
  • Funds can be contributed by the owner, rolled or directly transferred into the IRA from another Roth IRA (restrictions may apply), or converted from a Traditional IRA (though converted funds may be taxable). 
  • Qualified Retirement Plan (QRP) funds may not be moved to a Roth IRA.

Fees could reduce the earnings on the account.

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