Roth IRAs

The Roth IRA from may offer greater tax savings and withdrawal flexibility than a traditional IRA. Roth IRA accounts have no mandatory annual distribution requirements, and you can contribute beyond age 70-½. Eligibility depends on income.

Minimum to Open
$1,000

Contribution Deadline
April 15, 2019 for 2018 tax year

Tax advantages

Contribution
Not tax-deductible

Earnings
Tax free (earnings grow free of federal income tax)

Withdrawals
Tax free (withdrawal of original contribution)
Potentially tax-free (withdrawal of earnings if part of a qualified withdrawal)

Contributions

Eligibility

For 2018:
For single filers - up to $120,000 ($120,000-$135,000 for a partial contribution).
For joint filers - up to $189,000 ($189,000-$199,000 for a partial contribution).

For 2019:
For single filers - up to $122,000 ($122,000-$137,000 for a partial contribution).
For joint filers - up to $193,000 ($193,000-$203,000 for a partial contribution).

Annual Contribution Limit

You may contribute simultaneously to a traditional IRA and a Roth IRA (subject to eligibility) as long as the total contributed to all IRAs (traditional or Roth) is no more than $5,500 for the 2018 tax year or $6,000 for the 2019 tax year ($6,500 and $7,000 respectively age 50 and older).

To determine your allowable contribution amount, please see chart below.

Withdrawals

Penalty Free
Withdrawal of contributions at any age, or earnings after age 59-½ and after account has been open for five years.

Penalty
Withdrawal of earnings before age 59-½ or before your account has been open for at least five years.

Exceptions to penalty
Before five year holding period ends, subject to tax, or after five year holding period ends, not subject to tax, penalties are waived if you are over 59-½ or funds are withdrawn for:

• Higher education expenses for you or family members. Expenses include tuition, fees, books, supplies and room and board (must be enrolled at least part time).
• First-time home purchase expenses ($10,000 lifetime limit) to buy, build, or rebuild a first home for you, your parents, children, or grandchildren. You must not have owned a home within the past two years.
• Death or disability.
• Certain medical expenses including qualifying health insurance costs for certain unemployed individuals and unreimbursed expenses exceeding 7.5% of AGI.
• Withdrawals made in equal installments over the account holder's life expectancy.

* Five-year holding periods: There is a single five-year holding period when determining whether earnings can be withdrawn tax-free as part of a qualified distribution from a Roth contributory account. This period begins January 1 of the year of the first contribution to any Roth contributory account.

Maximum Allowable Contribution Amounts

The chart below briefly describes the maximum allowable contribution amount to a Roth IRA for the category that applies to your household. Your eligibility to contribute to a Roth IRA is also subject to income limits.

Allowable contribution amounts	2018	2019
Individuals under age 50	$5,500	$6,000
Individuals age 50 and older	$6,500	$7,000
Married under age 50 (both)	$11,000	$12,000
Married age 50 and older (both)	$13,000	$14,000

-OR- 100% of earned income, whichever is less.

Eligibility Based on Annual Modified Adjusted Gross Income

Contributions are made on an after-tax basis, and can be made even if you contribute to a traditional IRA, including a Rollover IRA or SEP-IRA, or other employer-sponsored retirement plan.

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