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Roth IRA

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Roth IRA

A Roth IRA is an Individual Retirement Account to which you make contributions with after-tax dollars. The benefits of a Roth IRA are that your contributions can grow tax-free and you can generally make withdrawals tax- and penalty-free after you reach age 59½.

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View 2013-2014 Roth IRA contribution limits

See if you're eligible to open a Roth IRA and how much you can contribute based on your earned income.
 

See if converting to a Roth IRA is right for you

Compare estimated values of keeping a Traditional IRA vs. converting it to a Roth, and see estimated taxes.

At a glance: Roth IRA vs. Traditional IRA.

  Roth IRA Traditional IRA
Taxes
  • Contributions are not tax-deductible.
  • Earnings can grow tax-free.
  • Contributions may be tax-deductible.
  • Earnings can grow tax-deferred.
Withdrawals
  • Contributions are always tax- and penalty-free.
  • After age 59½ and if the account has been open 5 years, earnings are tax- and penalty-free.
  • Distributions are not required.
  • After age 59½, withdrawals are penalty-free but taxed as current income.
  • You must begin taking distributions at age 70½.
Funding your account
  • Use money you’ve earned.
  • Convert a Traditional IRA to a Roth IRA.
  • Roll over an old 401(k).
  • Transfer an IRA.
  • Use money you’ve earned.
  • Roll over an old 401(k).
  • Transfer an IRA.
Income limitations
  • You aren’t eligible for a Roth IRA if your earned income is above a certain level. See income limitations.
  • Anyone with earned income can contribute to a Traditional IRA.
  • Some contributions may be tax-deductible. See contribution limits.
Age guidelines N/A Before reaching age 70½, you can contribute if you have earned income.
Investment options Mutual funds, stocks, bonds, ETFs, CDs, and money market funds. Mutual funds, stocks, bonds, ETFs, CDs, and money market funds.

Take the next step.

Open a Roth IRA today.

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