Quick Facts on Roth IRA Contributions

Here are some facts that you need to know about Roth IRA Contributions.

  • Roth IRA ContributionsYou have earned income
  • You contribute already taxed funds (after-tax funds) to a Roth IRA
  • You receive no tax deduction for your Roth IRA contribution
  • You can continue to contribute to a Roth IRA after age 70 ½
  • Qualified withdrawals are income-tax free (a withdrawal made after any Roth account has been established for 5 years and the Roth owner is over the age of 59 ½ or qualifies for the first-time homebuyer exception or the distribution is due to the account owner’s death or disability)

  • You can also have and contribute to a spousal Roth IRA, based on your income even if your spouse has no income
  • Withdrawals of converted amounts may be subject to the 10 percent early distribution penalty if the 5-year exclusion period has not been met (this is a separate 5-year period from the one noted above) and the Roth owner is under age 59 ½ at the time of the withdrawal
  • There are no required minimum distributions for Roth IRA owners
  • Roth IRA designated beneficiaries can stretch distributions over their lifetimes the same as traditional IRA beneficiaries

Copyright 2017 Ed Slott and Company, LLC
https://www.irahelp.com/printable/roth-ira-contributions-quick-fact-sheet