Tax Free Growth with a Roth IRA

Roth IRAs are owned by 19 percent of all U.S. households. If you are younger than age 50, you can contribute a maximum of $6,000 per year. If you are age 50 or older, you can contribute up to $7,000 per year.

Advantages of a Roth IRA:

  • No required minimum distributions
  • Tax-free withdrawals
  • Can contribute as long as you want

Penalty-Free Withdrawals:

  • Only your contributions as long as you wait five years from contribution
  • After age 59 ½
  • Can leave your Roth IRA as a legacy if you do not need it
  • Up to $10,000 for a first-time home purchase
  • Withdrawals taken because of disability
  • Payment for medical insurance premiums if you have been unemployed for more than 12 consecutive weeks
  • Payment for your own qualified higher education expenses or those of your children
  • Distributions to your beneficiaries if you die


Roth IRA Traditional IRA
After-tax contributions Pre-tax contributions
Pay taxes when money contributed Pay taxes when money withdrawn
Contribution limit of $6,000 if younger than 50 Contribution limit of $6,000 if younger than 50
Catch-up contributions of $1,000 Catch-up contributions of $1,000
Penalties on withdrawals of earnings before 59 ½ Penalties on withdrawals before 59 ½
No required minimum distributions RMDs beginning at age 70 ½
Tax-free distributions to your beneficiaries if you die* Beneficiaries may be required to take RMD which can be taxable


Learn more Roth IRAs at the American Institute of Certified Tax Planners.


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