Roth IRA
No Fee IRA¹
Annual custodial and maintenance fee waived for all IRAs
What is it?
A Roth IRA is an account that provides the opportunity for your earnings to grow tax-free². Generally, Roth IRAs offer greater tax savings and withdrawal flexibility than Traditional IRAs.
What are the unique benefits?
- Any earnings are tax-free if withdrawn after age 59½ and the account has been open five years or more
- Your contributions (not earnings) can be withdrawn tax and penalty-free at any time
- No required minimum distribution (RMD) at age 70½
Who is eligible?
Anyone as long as your modified adjusted gross income (AGI) does not exceed:
| 2008 | |
|---|---|
| Single Tax Filers | $116,000 |
| Joint Tax Filers | $169,000 |
- Account owner must have earned income equal to or greater than their IRA contribution amount
- If you contribute to an employer-sponsored plan like a 401(k) or 403(b), you are still eligible to open a Roth IRA as long as you meet the eligibility requirements above.
- If you have no earned income but your spouse earns enough income to cover your contribution as well as their own and their income (AGI) does not exceed the limits above you can contribute to a Roth IRA
How much can I contribute?
If you are under age 50 you can contribute:
For 2007: $4000
For 2008: $5000
If you are age 50 or older you can make an additional $1,000 "catch-up" contribution each year.
What can I invest in?
A Roth IRA allows you to choose from investment products such as mutual funds, stocks, bonds, and ETFs, as well as bank products like CDs and money market savings.
See Ways to Invest for more information.2007 Contribution Deadline:
April 15, 2008 (Tuesday)
| Contribution Limits: | |
|---|---|
| 2007 | 2008 |
| $4,000 | $5,000 |
Have a Question?
Call our Retirement Help Desk.
1.800.774.4724
Mon-Fri: 8am-9pm ET
Saturday: 9am-5:30pm ET
