Roth IRA (Is it Right For You?)

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ROTH IRA - Earn Money Tax Free

The first Roth IRA eligibility consideration is income. You must earn money to open any IRA. 

People that make too much money cannot open a Roth IRA.  (They can get around this with a Backdoor Roth).

You can’t put more money than you make in any IRA in any one year. So if your income is only $1,500 in a given year, then $1,500 is the most you can contribute to your Roth in that year.

Money put in a Roth IRA is after-tax money and you will never have to pay taxes on either the principal (what you have put in) nor the interest earned (even if you end up with $400,000 interest--NO TAXES!)  That is the beauty of a Roth IRA!   

Many finance experts say EVERY person in his or her 20's should have a ROTH IRA!

There is an exception that allows Roth accounts for nonworking spouses. If you and your spouse file a joint return but one does not work, the employed spouse can open and contribute to a Roth IRA for the unemployed partner.  So this is one way to be able to double your contribution in any one year.

You can put money in your Roth IRA for a given year up until tax filing deadline in April of the next year.

Since the tax rules do change some from year to year, go to the link below to find the current contribution limits.

Roth IRA Basics (link to

Roth IRA Limits

9 Compelling Reasons to Consider a Roth IRA (Fidelity Article)