What Are The Rules For Roth IRAs?
—————————————————– A Roth IRA is, by definition, a non-deductible IRA, regardless of your income and regardless of whether or not you are covered by a pension plan. Therefore, unlike a deductible IRA, contributing to a Roth IRA provides no immediate tax savings. Like with any IRA, the earnings in the account are tax deferred while remaining in the IRA. Like a regular IRA, you (or your spouse, if filing jointly) must have earned income in an amount that is not less than the IRA contribution, in order to make a contribution to a Roth IRA. You can have both a Roth IRA and a regular IRA for the same year, but the amount contributed to your Roth IRA reduces the amount you may contribute to a regular IRA, dollar for dollar. Unlike regular IRAs, you are free to continue to contribute to a Roth IRA after age 70 1/2, if you otherwise meet the rules. Where a Roth IRA differs primarily is in several rules concerning withdrawals. 1. Withdrawals from a Roth IRA ar
