What is a Roth IRA?
Open a Roth IRA and take advantage of potential after-tax benefits as you save for retirement.
A Roth Individual Retirement Account (IRA) is a form of retirement account to which you contribute after-tax dollars. An account owner's money grows tax-free in this form of IRA and is withdrawn tax- and penalty-free after age 59½ (if the account has been open for five years or more). While this doesn't result in current-year tax benefits, as contributions to a Traditional IRA do, investing in a Roth IRA is an excellent way to build additional future wealth for retirement. Other advantages of a Roth IRA include:
- No contribution age restrictions. Account owners can contribute at any age as long as their earned income qualifies.
- No Required Minimum Distributions (RMDs). Account owners are not required to make withdrawals when they retire, so their savings continue to grow even during retirement.
- No income taxes for inherited Roth IRAs. Account owners can pass their Roth IRAs to their beneficiaries, which can be withdrawn as tax-free income.
A Roth IRA is a great option if account owners expect to be in a higher tax bracket in the future when tax-free withdrawals will be even more advantageous. Not everyone will be eligible for this type of retirement account due to income limitations on opening a Roth IRA.
2023-2024 Roth IRA Tax-Deductible Contribution Limits
The maximum annual contribution for all your IRAs combined is:
For account owners under the age of 50: $6,500 (for 2023) and $7,000 (for 2024)
For account owners over the age of 50: $7,500 (for 2023) and $8,000 (for 2024)
Speak with an Advisor
We are here to help you make the right investment decisions.
Roth IRA Contribution Limits (Tax Year 2023)
| Single Filers (MAGI) | Married Filing Jointly (MAGI) | Married Filing Separately (MAGI) | Maximum Contribution for individuals under age 50 | Maximum Contribution for individuals age 50 and older |
|---|---|---|---|---|
| under $138,000 | under $218,000 | $0 | $6,500 | $7,500 |
| $139,500 | $219,000 | $1,000 | $5,850 | $6,750 |
| $141,000 | $220,000 | $2,000 | $5,200 | $6,000 |
| $142,500 | $221,000 | $3,000 | $4,550 | $5,250 |
| $144,000 | $222,000 | $4,000 | $3,900 | $4,500 |
| $145,500 | $223,000 | $5,000 | $3,250 | $3,750 |
| $147,000 | $224,000 | $6,000 | $2,600 | $3,000 |
| $148,500 | $225,000 | $7,000 | $1,950 | $2,250 |
| $150,000 | $226,000 | $8,000 | $1,300 | $1,500 |
| $151,500 | $227,000 | $9,000 | $650 | $750 |
| $153,000 & over | $228,000 & over | $10,000 & over | $0 | $0 |
Roth IRA Contribution Limits (Tax Year 2024)
| Single Filers (MAGI) | Married Filing Jointly (MAGI) | Married Filing Separately (MAGI) | Maximum Contribution for individuals under age 50 | Maximum Contribution for individuals age 50 and older |
|---|---|---|---|---|
| under $146,000 | under $230,000 | $0 | $7,000 | $8,000 |
| $147,500 | $231,000 | $0 | $6,300 | $7,200 |
| $149,000 | $232,000 | $0 | $5,600 | $6,400 |
| $150,500 | $233,000 | $0 | $4,900 | $5,600 |
| $152,500 | $234,000 | $0 | $4,200 | $4,800 |
| $153,500 | $235,000 | $0 | $3,500 | $4,000 |
| $155,000 | $236,000 | $0 | $2,800 | $3,200 |
| $156,500 | $237,000 | $0 | $2,100 | $2,400 |
| $158,000 | $238,000 | $0 | $1,400 | $1,600 |
| $159,500 | $239,000 | $0 | $700 | $800 |
| $161,000 & over | $240,000 & over | $10,000 & over | $0 | $0 |