Roth IRA - Frequently Asked Questions
Click on any question below to veiw answers to some common questions about Roth IRA accounts.
What makes the Roth IRA different from the Traditional IRA?
How much can I contribute?
Single tax filers may contribute up to the maximum allowable per year if the Modified Adjusted Gross Income (MAGI) is less that $95,000. If a single tax filer's MAGI is between $95,000 and $110,000, they may contribute a reduced amount adjusted for their income. Married couples filing jointly may each contribute up to the maximum allowable if their MAGI is less than $150,000. Contributions for joint filers are reduced for MAGI's between $150,000 and $160,000.
Roth IRA contributions may not be made by single tax filer's with MAGI of more than $110,000, or couples with MAGI of more than $160,000.
For 2005 and 2006, the annual contribution limit for a Roth IRA is $4,000 ($8,000 for married couples) or 100 percent of earned income, whichever is less. At age 50 and older, you may contribute an additional $500.00 per year ($1,000 if married, filing jointly).
Who is eligible to open a Roth IRA?
When can I take my money out?
How do I open a BankDirect IRA?