Roth IRAs Tutorial
  1. Roth IRAs: Introduction
  2. Roth IRAs: Eligibility Requirements
  3. Roth IRAs: Contributions
  4. Roth IRAs: Distributions
  5. Roth IRAs: Conclusion

Roth IRAs: Introduction

The Roth IRA is a retirement saving account to which individuals can make contributions with after-tax dollars. If certain requirements are met, distributions from the Roth IRA will be tax-free. Here we look at the Roth Individual Retirement Account (IRA), how it works, how to set one up and how distributions are taxed.



Why Establish a Roth IRA?

The Roth IRA is an excellent supplement to an individual’s retirement nest egg. It accrues earnings on a tax-deferred basis, but these earnings amounts are tax free if certain requirements are met. For Roth IRAs, contributions are not tax deductible but qualified distributions are tax free. Contributions to the Roth IRA are discretionary, so individuals can choose when they want to fund their Roth IRA.



Roth IRAs: Eligibility Requirements

  1. Roth IRAs: Introduction
  2. Roth IRAs: Eligibility Requirements
  3. Roth IRAs: Contributions
  4. Roth IRAs: Distributions
  5. Roth IRAs: Conclusion
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RELATED FAQS
  1. What is the Roth IRA 5 year rule?

    Learn more about the Roth IRA five-year rule and the requirements that allow for tax-free withdrawals before five years have ... Read Answer >>
  2. What are the advantages of a Roth IRA?

    Contribute to your Roth IRA and gain the advantage of it free of taxes and penalties. Make approved early withdrawals to ... Read Answer >>
  3. What are some examples of the most common assets on a Roth IRA?

    Investing in a Roth IRA can be achieved by using a variety of assets. Cash, real estate, stocks, bonds and other investments ... Read Answer >>
  4. Can I withdraw money from my Roth IRA?

    Withdrawing money from you Roth IRA is taxed and penalized under certain conditions. Learn about the five-year rule and prerequisites ... Read Answer >>
  5. Can an individual contribute to both a Roth IRA and a Traditional IRA in the same ...

    Yes, an individual can contribute to both a Roth IRA and a Traditional IRA in the same year. The total contribution into ... Read Answer >>
  6. How can you borrow from a Roth IRA?

    Learn how to borrow money from your Roth IRA by rolling it over into another IRA account or taking an early withdraw to get ... Read Answer >>

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