Roth IRA basics.

Among the many retirement savings options we offer, the Roth IRA is one of the most popular. The Roth IRA (named after the Senate Finance Committee chairman) allows eligible individuals to make nondeductible Roth IRA contributions of up to $5,500 with an additional catch-up contribution amount of $1,000 for people age 50 or older. Eligibility is based on your tax filing status and MAGI as shown below:

The amount(s) contributed can be withdrawn at any time, with no tax liability or penalty. Contributions and/or distributions to/from a Roth IRA are not constrained by age. (With a traditional IRA, contributions cannot be made after age 70½, and distributions are required to begin at age 70½.

TAX FILING STATUSEligible for a Full ContributionEligible for a Partial ContributionNot Eligible to Make a Contribution
Single with Modified AGI$120,000 or Less$120,000 - $135,000$135,000 or More
Married Filing Joint with MAGI of$189,000 or Less$189,000 - $199,000$199,000 or More
Married Filing Separately with MAGI of$0 or Less$0 - $10,000$10,000