You may be asking what a Roth IRA is, and what the basic requirements are to have one. Eligibility for a Roth IRA depends on two factors: you must have earned income, and your modified adjusted gross income (AGI) cannot exceed the limits set forth for Roth IRAs. Roth IRAs can be self-directed, allowing account owners access to a number of alternative investments to build retirement income.
A few benefits of a Roth IRA include:
- Contributions are made after tax, allowing all earnings to grow tax-free
- Tax is paid on contributions the year you make them, and in most cases, contributions can be withdrawn without taxation
- Contributions can be made after the age of 70
As mentioned, there are some requirements of a Roth IRA. Some of these requirements include (but not limited to):
- Your contributions must be made in cash unless you are making a qualified rollover or transfer contribution, and the Custodian accepts non-cash rollover or transfer contributions.
- Your regular annual Roth IRA contributions may be deposited at any time during that taxable year and up to the due date for the filing of your Federal income tax return for that taxable year, no extensions. This generally means April 15th of the following year.
To retrieve a full list of requirements, or for more information on Roth IRAs, please visit us at www.midlandira.com today!