Who can contribute?
Anyone who has income from compensation (or who is filing jointly with a spouse who earns compensation)
Certain income limits apply - Always talk to your tax advisor for your specific limits.
How much can I contribute?
Maximum amounts are combined with both traditional and Roth Ira’s
$6,000 per year - subject to MAGI limits
Earnings grow tax deferred until withdrawn
Contributions may be tax deductible
Withdrawls are penalty free for the following reasons:
- Qualified higher-education expenses
- First time home purchase (Lifetime limit for exemption on first-time home purchase is $10,000)
- Age 59 ½
- Qualifying medical expenses exceeding 7.5% of income
- Payment to beneficiaries upon the owner’s death.
- Payment of health insurance premiums while employed