Fortunately, there's still a way to still a way to contribute to a
Roth IRA for those subject to the phase out of direct contributions by the income limits.
In October 2017, with final numbers on his 2016 return available, John might have recharacterized the precise amount back to his traditional IRA, keeping enough in the
Roth IRA to fill out a tax bracket but avoid having any dollars taxed at a higher rate.
There are no age limits for contributions to a
Roth IRA. However, income limits apply.
You can generally also roll over ("convert") non-Roth distributions from an employer plan into a
Roth IRA (you'll generally pay tax upon the "conversion" but qualified distributions from the
Roth IRA will be tax free).
Facts: In 2001James Benenson III and Clement Benenson each established a
Roth IRA. Shortly thereafter, each
Roth IRA invested $1,500 in JC Export, a newly formed domestic international sales corporation (DISC).
The program operated as a starter for a
Roth IRA account for those individuals who did not have retirement plans at work.
Maxing out your
Roth IRA? Less exhilarating, but much more rewarding.
Roth IRA investors tend to be younger, which ICI attributes to the fact that only recently have the rules regarding
Roth IRA contribution limits, conversions and rollovers been eased.
Before answering that question, which is the heart of this article, the following is a quick explanation of the
Roth IRA. The
Roth IRA is simply a personal retirement savings account where the owner prepays the tax.