Is A Roth IRA Right For You?

Roth IRAs allow your assets to grow tax-free by taxing contributions up front and then allowing for tax-free withdrawals upon retirement.  Contributions to a Roth IRA may be withdrawn without penalty or taxation at any time, while earnings may be withdrawn penalty-free if used for qualifying purposes. To help you make a better informed decision about whether or not a Roth IRA is suitable for you, review the key features listed below.

Key Features of a Roth IRA

Eligibility

You may contribute at any age as long as you have earned compensation subject to income limits.
Single: Less than $118,000 to qualify for full contribution; $118,000 but less than $133,000 to qualify for partial contribution.
Married Filing Jointly: Less than $186,000 to qualify for full contribution; $186,000 but less than $196,000 to qualify for partial contribution.

Maximum Annual Contribution Limit

2015 to 2017: $5,500.
(This is the maximum total that may be contributed to all of your IRA accounts annually.)

Catch-up Contributions

Over age 50 (as of the end of the calendar year), you may contribute an additional $1,000 annually.

Tax Advantage

Assets grow tax-deferred without penalties or tax consequences.

Tax Deductibility

Contributions are not tax-deductible.

Distributions

No required distribution starting date. Distribution is required upon death of account owner.

Withdrawals

Contributions may be withdrawn without penalty at any time. For earnings, if you are under age 59½ and your withdrawal is not for one of the following reasons, the withdrawal may be subject to a 10% early withdrawal penalty:

  • Death or disability of account owner
  • Part of a series of substantially equal periodic payments
  • Certain major medical expenses
  • Certain medical insurance premiums during a period of unemployment
  • To buy, build or rebuild a first home
  • Qualified higher education expenses
  • IRS levy
  • Qualified reservist distribution
If your initial contributions to a Roth IRA were made at least five years earlier and you are at least age 59½ you may withdraw your earnings without a tax or penalty.

Performance quoted represents past performance and does not guarantee future results. Investment return and principal value will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than that shown here. Select a Fund to view the most recent month-end performance information or go to each fund's snapshot page to view most recent month-end performance as well as any waiver or expense reimbursement information.

The information contained in this piece should not be considered legal or tax advice; questions regarding your specific situation should be directed to your legal or tax advisor.

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