IRA contribution limits will remain at $5,500.00 in 2016 & 2017, and $6,500.00 for those age 50+ wishing to make catch-up contributions.
This page gives you a brief description of your IRA options. Please use it as a starting point to make yourself familiar with the expanded IRA rules. Then, consult with your tax advisor about what is the best choice for you. Because tax laws are complicated, you'll want to make sure that you take into consideration your complete financial picture and strategy needs. Making an informed decision now can prevent penalties and reduced earnings in the future.
|Type of Account||Roth IRA|
|Contributions to the Roth IRA are not deductible, but the earnings grow tax free. An account must be designated as a Roth IRA when it is opened in order for you to receive its special benefits.|
|The ROTH IRA is similar to the traditional IRA in many ways, but the different tax treatment may make it a better choice for many taxpayers.|
|Like all IRAs, the Roth is subject to income limitations for the maximum contribution. Individuals and spouses with earned income are eligible to a Roth as long as your MAGI (Modified Adjusted Gross Income) meet the following limits:||
|In general, you may begin to make withdrawals on the date you become 59 1/2. For the earnings to be withdrawn tax-free, the funds must have been in the account for at least 5 years. If you withdraw your funds prior to age 59 1/2, your original contributions, not your interest or earnings, may be withdrawn without tax penalty or income tax.||You may withdraw qualified "Special Purpose" distributions (of contributions and earnings) before age 59 1/2 without tax penalty for qualified higher education expenses and for up to $10,000 towards a first time home purchase. There is no requirement that you begin taking distributions by age 70 1/2.|