Roth IRA

General:

• Must be 18 years of age or older with taxable compensation
• Must have Modified Adjusted Gross Income (MAGI) under certain thresholds (see ‘Single Filers’ or ‘Joint Filers’ for additional information). If your MAGI exceeds the MAGI limitations to contribute to a Roth IRA, you can still contribute to a Traditional IRA, but your Traditional IRA contributions may not be tax deductible if you (or your spouse) is covered by a employer sponsored qualified retirement plan and your MAGI exceeds certain thresholds. Additionally, Traditional IRA contributions may be converted to a Roth IRA at any time (taxable amounts converted to a Roth IRA will be subject to ordinary income taxes).
• To apply online, you must be a U.S. citizen or resident
• Can open and make a contribution to your Roth IRA for a tax year at any time during the tax year or by your federal tax return filing deadline (not including extensions). This date is generally April 15 of each year. Applications postmarked by this date will be accepted.

Single Filers:

• If an investor’s MAGI is $146,000 or less in 2024, they may be eligible to make a full contribution. If their MAGI is between $146,000-$161,000 in 2024, they may be eligible to make a partial contribution. An investor is not eligible to make a contribution if their MAGI is $161,000 or more in 2024.

Married, filed jointly:

• If a couple’s combined MAGI is $230,000 or less in 2024, they may be eligible to make a full contribution. If their combined MAGI is between $230,000-$240,000 in 2024, a couple may be eligible to make a partial contribution. They are not eligible to make a contribution if MAGI is $240,000 or more in 2024.
  
  

Note:

Modified adjusted gross income (MAGI) is used to determine whether an individual qualifies for certain tax deductions and other tax benefits. Most notably, it is used to determine how much of an individual's IRA contribution is deductible (if the individual or their spouse is covered by a workplace retirement plan) and whether an individual is eligible to contribute to a Roth IRA.

The amount an investor can contribute to a Roth IRA depends on various factors, such as Modified Adjusted Growth Income (MAGI) and tax filing status. View Roth IRA Contribution Limits and Deadlines to learn more.

An investor can contribute to an IRA account by transferring funds online from a bank or brokerage account, sending a check, or completing a wire transfer. For more information about ways to make a deposit to an account, see the Help topic, Contribute to an IRA account. 

An investor is allowed to contribute 100% of earned income up to the annual contribution limit. View IRA Contribution Limits and Deadlines to learn more. 

A Roth IRA conversion is the process of moving assets from a Traditional, Rollover, SEP, or SIMPLE IRA to a Roth IRA. The account owner can convert all or a portion of their IRA. If the account owner is considering converting a SIMPLE IRA, the account owner should be aware that a SIMPLE IRA cannot be converted to a Roth IRA during the 2 year period beginning on the date on which the account owner first participated in any SIMPLE IRA plan maintained by their employer. The deadline to complete a Roth IRA conversion is December 31 of each year. Please note: The recharacterization of Roth Conversions is no longer permitted due to the Tax Cut and Jobs Act. Read more if you are thinking about a Roth IRA conversion. For questions specific to your situation, please speak to your tax advisor. A Roth IRA conversion can be requested by using the online Roth IRA Conversion Request Form.