Roth IRAs

Saving and investing in a Roth IRA is ideal for those looking for tax-free growth of their retirement savings. Once you reach age 59½ and you have held your account for at least five (5) years, you may receive tax-free withdrawals of both your contributions as well as your accumulated earnings. Additionally, because you are never required to take withdrawals, Roth IRAs are great tools for retirement and estate planning.

A Roth IRA may benefit you because:

  • Qualified distributions may be taken free of income tax liability.
  • There are no minimum distribution requirements.
  • You may be able to transfer your balance to your heirs without tax liability.
  • You may be able to save on taxes if you anticipate being in a higher tax bracket in retirement, than you are in currently.
  • Up to $10,000 in earnings may be withdrawn tax-free, prior to age 59½ if used for a qualified first-time home purchase.

Key Features of Roth IRAs

Tax Advantages

  • Tax-free growth potential.
  • You pay no taxes when you make qualified withdrawals after age 59½ and your account has been open at least five years


  • Age: No age restrictions, but you must have earned income in order to make contributions.
  • Maximum Income: You may not be eligible to contribute to a ROTH IRA if your income is over certain limits, which are determined annually. Click here to determine this year’s Roth IRA Contribution Limits (PDF).
  • Minimum Income: Earned income must be equal to or greater than your annual contributions.

Maximum Contributions

  • Tax-Free: Contributions may be withdrawn at any time without taxes or penalties; earnings may be withdrawn tax-free and penalty free once you reach age 59½ and the account has been open for at least five years.
  • Taxable: Earnings may be subject to taxes and penalties if distributed before age 59½ and before the account is five years old.

Can I Contribute to a Roth IRA?

You may be able to contribute to a Roth IRA for yourself or your spouse if you have earned income. You must also fall below the certain income limits.

What is the Maximum Contribution that I can make?

To determine your maximum allowable contribution for the current year, click here (PDF).

Spousal IRAs →