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

Roth IRAs: Conclusion

Like the Traditional IRA, Roth IRAs are flexible, and they are a popular way for individuals to save for their retirement. Roth IRAs differ, however, because assets can grow on a tax-free basis.

Let's recap:

  • Any individual who pays income tax may establish and fund a Roth IRA.
  • Rental income, interest and dividends and other amounts generally excluded from employer-paid income are not eligible as compensation for contributing to a Roth IRA.
  • A Roth IRA can be funded from your own contributions, spousal contributions, transfers and rollovers.
  • A Roth IRA must be established with an institution - such as a bank, brokerage or other financial institution - that has received IRS approval to offer IRAs.
  • All IRA contributions must be made in cash. Regular contributions cannot be made in the form of securities.
  • IRAs cannot invest in collectibles but can invest in U.S. gold coins, silver coins and certain other precious metals.
  • Qualified distributions from Roth IRAs are tax and penalty free, but non-qualified distributions may be subjected to tax and early-distribution penalty.

  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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  1. Can you make catch-up contributions to a Roth IRA?

    Roth individual retirement accounts (IRAs) allow you to contribute after-tax dollars to an account with the ability to take ... Read Full Answer >>
  2. When can catch-up contributions start?

    Most qualified retirement plans such as 401(k), 403(b) and SIMPLE 401(k) plans, as well as individual retirement accounts ... Read Full Answer >>
  3. Who can make catch-up contributions?

    Most common retirement plans such as 401(k) and 403(b) plans, as well as individual retirement accounts (IRAs) allow you ... Read Full Answer >>
  4. Can you have both a 401(k) and an IRA?

    Investors can have both a 401(k) and an individual retirement account (IRA) at the same time, and it is quite common to have ... Read Full Answer >>
  5. Are 401(k) contributions tax deductible?

    All contributions to qualified retirement plans such as 401(k)s reduce taxable income, which lowers the total taxes owed. ... Read Full Answer >>
  6. Are 401(k) rollovers taxable?

    401(k) rollovers are generally not taxable as long as the money goes into another qualifying plan, an individual retirement ... Read Full Answer >>

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