A Roth IRA is an IRA that, except as explained below, is subject to the rules that apply to a traditional IRA.
You cannot deduct contributions to a Roth IRA.
If you satisfy the requirements, qualified distributions are tax-free.
You can make contributions to your Roth IRA after you reach age 70 ½.
You can leave amounts in your Roth IRA as long as you live.
The account or annuity must be designated as a Roth IRA when it is set up.
The same combined contribution limit applies to all of your Roth and traditional IRAs. Your Roth IRA contribution might also be limited based on your filing status and income.
Limits on Roth IRA Contributions based on modified AGI
- 2012 - Amount of Roth IRA Contributions You Can Make for 2012
- 2013 - Amount of Roth IRA Contributions You Can Make for 2013
Details about Roth IRAs are contained in Publication 590, Individual Retirement Arrangements (IRAs) and include:
- Setting up your Roth IRA;
- Contributions to your Roth IRA; and
- Distributions (withdrawals) from your Roth IRA.