Anyone with earned income that doesn't exceed income limits of $133K for single filers and $196K for joint filers is eligible
for a Roth IRA
at any time
Unlike a Traditional IRA, Roth IRA contributions may be withdrawn tax- and penalty-free
Tax-free withdrawals on qualified distributions
Qualified distributions are tax- and penalty-free to both account holders and beneficiaries2
No required minimum distributions (RMDs)
No RMDs beginning at age 70½ for account holder
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What are the eligibility requirements for Roth IRA?
- Must be 18 years of age or older with earned income
- Can continue to make contributions after age 70, as long as an investor has earned income
- Must have MAGI (Modified Adjusted Gross Income) under certain thresholds (see ‘Single Filers’ or ‘Joint Filers’ for additional information). If an investor exceeds the income limitations for a Roth IRA, they can consider contributing to a Traditional IRA. Contributions will not be tax-deductible; however, an investor will still benefit from the potential of tax-deferred growth. Additionally, Traditional IRA contributions may be converted to a Roth IRA at any time.
- To apply online, you must be a U.S. citizen or resident
- Roth IRAs must be established by the tax filing deadline (without extensions) for the tax year to which your qualifying contribution(s) will apply. This date is generally April 15 of each year. Applications postmarked by this date will be accepted.
- If an investor’s MAGI is less than $120,000, they may be eligible to make a full contribution. If their MAGI is between $120,000–$135,000, they may be eligible to make a partial contribution. An investor is not eligible to make a contribution if their MAGI is more than $135,000.
- If a couple’s combined MAGI is less than $189,000, they may be eligible to make a full contribution. If their combined MAGI is between $189,000–$199,000, a couple may be eligible to make a partial contribution. They are not eligible to make a contribution if MAGI is more than $199,000.
Modified adjusted gross income (MAGI) is used to determine whether a private individual qualifies for certain tax deductions. Most notably, it is used to determine how much of an individual's IRA contribution is deductible and whether an individual is eligible for premium tax credits.
What are IRA contribution limits and deadlines?
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.
How can an investor contribute to an IRA?
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.
What is a Roth IRA conversion and how can it be requested?
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 converting a SIMPLE IRA, the account must have been opened for at least two years to be eligible. 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. 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.
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