While contributions to a Roth IRA* are not tax deductible, withdrawals are tax free if certain conditions are met. For 2013, the maximum contribution is $5,500 ($6,500 is you are age 50 or older).
Withdrawals from a Roth IRA are tax and penalty free if the account owner is at least 59½ years old and the account has been held at least five years. Withdrawals from a Roth IRA are also tax and penalty free under these circumstances:
Unlike the Traditional IRA there is no requirement that withdrawals be started at age 70½.
Eligibility to open a Roth IRA is based on income:
|Filing Status||Modified Adjusted Gross Income||Eligibility|
|Single||Less than $112,000||Full contribution|
|$112,000 to $126,999||Partial contribution|
|$127,000 or more||No contribution|
|Married, filing jointly||Less than $178,000||Full contribution|
|$178,000 to $187,999||Partial contribution|
|$188,000 or more||No contribution|
|Married, filing separately||Less than $10,000||Partial contribution|
|$10,000 or more||No contribution|
*Life insurance and annuity products are not available in New York. Refer to our Disclaimer for additional information.