Wealth &
Protection Planning

Roth IRA

A Roth IRA is designed to help you save for retirement.  It allows after-tax contributions in exchange for the potential for tax-free income at retirement.  Generally speaking, if you think you might be in a higher tax bracket when you retire, a Roth IRA may be right for you. 

Am I eligible to contribute to a Roth IRA?

If you have earned income, or your spouse has earned income and you file your taxes as married filing jointly, you can contribute at any age as long as your modified adjusted gross income (MAGI) falls below or within the limits below:

MAGI Contribution Limits

Filing Status

2017

2018

Contribution

Individual

Less than $118,000

Less than $120,000

Full contribution

$118,000 - $132,999

$120,000 - $134,999

Partial contribution

$133,000 or more

$135,000 or more

No contribution

Married Filing Jointly

Less than $186,000

Less than $189,000

Full contribution

$186,000 - $195,999

$189,000 - $198,999

Partial contribution

$196,000 or more

$199,000 or more

No contribution

Married Filing Separately

$1 - $9,999

$1 - $9,999

Partial contribution

$10,000 or more

$10,000 or more

No contribution

Am I eligible to contribute to a Roth IRA? 
  • If you have earned income, or your spouse has earned income, and you file your taxes as married filing jointly, you can contribute at any age as long as your modified adjusted gross income (MAGI) falls below or within the limits below:
How much can I contribute to my Roth IRA? 
  • You can contribute 100% of your compensation - up to the annual contribution limit.  Those age 50 and older can make additional catch-up contributions.  These limits, however, are reduced by any amount contributed to a traditional IRA. 
Contribution Limits for 2017 and 2018
Individuals $5,500
Age 50+ $6,500 ($5,500 + $1,000 catch-up contribution)


  • You can contribute to a Roth IRA anytime during the year, and up to your tax-filing deadline (generally April 15).  Keep in mind that you must make contributions to your Roth IRA in cash, not with investments. 
A Roth IRA Offers Two Kinds of Flexibility
  • How and When Money is Withdrawn
    • You can withdraw your contribution dollars at any time tax and penalty free: You can also withdraw earnings tax and penalty free, as long as you have owned a Roth IRA for at least five years and have reached age 59 1/2. The five-year clock starts with the first contribution.
    • No Required Minimum Distributions (RMDs): Unlike a traditional IRA, a Roth IRA has no required minimum distributions (RMDs) when you reach age 70 1/2. You control when you want to withdraw money. If you do not need the money in your Roth IRA for living expenses, you can leave it so that it can continue to potentially grow tax-free.
  • Your Investment Options
    • With a Roth IRA, you can choose from a wide variety of investments, including stocks, bonds, mutual funds, certificates of deposit (CDs), and money market funds. This variety gives you the opportunity to diversify your savings with an appropriate mix to help meet your retirement objectives.

Contact a STRIVE Wealth Advisor for more information about Roth IRAs. 

All tables show information for the 2016 and 2017 tax years. STRIVE Wealth & Protection Planning LLC, its employees, and wealth advisors cannot provide tax or legal advice. Please consult your attorney or qualified tax advisor regarding your situation.

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