Stifel Client Account Access:  LOG IN          ● 1 Consolidate 2 Manage 3 Retire Well ●                    Contact Us

Roth IRA

Eligibility

Single taxpayers with an adjusted gross income:

- Of less than $124,000 for 2020 are eligible to make a full contribution;

- Between $124,000 - $138,999 may make partial contributions;

- Over $139,000 are not eligible to contribute.

Married taxpayers filing jointly with an adjusted gross income:

- Of less than $196,000 are eligible to make a full contribution;

- Between $196,000 - $205,999 may make partial contributions;

- Over $206,000 are not eligible to contribute to a Roth IRA.

Contributions

- Contributions are not deductible.

- The maximum contribution allowed, either to a Traditional IRA, Roth IRA, or a combination of each, is the lesser of 100% of earned income or $6,000 in 2020.

- A married couple filing jointly can contribute up to an additional $6,000 for a non-working spouse, as long as the contributions do not exceed their combined earned income. • Catch-up contribution for individuals age 50 and older is $1,000.

- For 2020 and later, Roth IRA holders do not have an age limit on making contributions, as long as they have earned income.

- Contribution deadline is the individual’s tax return due date (excluding extensions).

Distributions

- Distributions can occur penalty free and tax free if "qualified."

- A distribution is considered qualified if the assets have been held in the Roth IRA for a minimum of five taxable years (beginning with the first taxable year for which a Roth contribution was made) and when one of the following events occur: 1) attainment of age 59 1/2; 2) disability; 3) the purchase of a first home; or 4) death.

- Distributions from the Roth IRA are not mandatory at age 72.

- A non-qualified distribution is subject to tax and penalty to the extent that it exceeds total contributions. Exceptions may apply.

Rollovers

- A rollover from one Roth IRA to another must occur within 60 days from the date of the withdrawal or it may be considered a distribution. One indirect rollover may occur per individual in each 12-month period.

Before making decisions about Individual Retirement Accounts, investors should consult their tax advisor. Stifel Independent Advisors and Stifel do not offer tax advice.