What are the rules on Roth IRAs?
Roth IRAs are not tax-deferred—you invest after-tax income and all returns are tax-free. Your annual contributions to a Roth IRA are limited by law. The annual limits are the safe as for traditional IRAs (see above), however to make the full contribution your modified adjusted gross income must be within certain limits. Withdrawals are not subject to federal income tax if the account is at least five years old and you are over age 59 1/2, or disabled. You may make withdrawals at a younger age without being disabled if you are using the money for qualified first-time homebuyer expenses. For current information on Roth IRAs, visit the Internal Revenue Service (IRS) web site. Can older people contribute more to an IRA? Yes. In 2009 you can contribute $6,000 per year per person (spouses, $12,000). Why should I participate in my employer’s retirement plan? Employer-sponsored plans usually offer to match your contributions up to a certain limit, which means that by investing some of your own
