For 2013, individuals younger than 50 may contribute $5,500 or 100% of eligible compensation, whichever is less.
For 2013, individuals age 50 and older may contribute $6,500 or 100% of eligible compensation, whichever is less.
All contributions are nondeductible.
- You may withdraw your contributions tax-free and penalty-free at any time. If you converted your traditional IRA to a Roth IRA, the converted amount can be withdrawn tax-free and penalty-free if five calendar years have passed since the conversion.
- If you’re under age 59½, earnings on the account are subject to taxes, and a 10% early-withdrawal penalty may apply if you withdraw the money.
- If you are 59½ or over and have met the five-year requirement, all withdrawals are tax-free and penalty-free.
- There is no minimum required distribution during the lifetime of the original owner.
You can also transfer assets from your old Roth retirement plans, including Roth 401(k)s, to your new Roth IRA when you change jobs or retire. By consolidating your retirement plans into a single Roth IRA, you can have a more complete view of your financial picture and better plan for retirement.