A Roth IRA allows you to set aside after-tax income up to a specified amount each year. Both earnings on the account and withdrawals after age 59½ may be tax-free.*
- Individuals with qualified income may contribute regardless of age.
- Contributions are nondeductible.
- Early withdrawals before the age of 59½ are subject to 10% penalty unless disabled or paying for qualified expenses (first home).
- No distribution requirements.
- All withdrawals, including earnings, may be tax-free after the age of 72.
- Not required to take a mandatory distribution.
- Contributions can be made at any age, with qualified income.
- Funds can be used to purchase a first home ($10,000 life time maximum).