At Dedham Savings, we try to make retirement planning simple, that’s why we’ve provided you with these frequently asked questions about Roth IRAs. We also provide a comparison chart of the Roth IRA and Traditional IRA to help you determine which IRA is right for you.
What is an IRA?
A special savings account, authorized by the government, that allows you to save for retirement.
What is a Roth IRA?
in 1998, a new IRA known as the Roth IRA became available. Contributions are non-deductible and can be withdrawn at anytime tax and penalty free. Withdrawal of earnings are tax free if the account has been open for at least five years and the account holder is age 59 1/2 or older.
Who is eligible to contribute to a Roth IRA?
Individuals who have earned income or receive alimony can contribute to an IRA. Income from other sources such as investments or inheritances does not qualify. The accounts are available to couples with a modified adjusted gross income (MAGI) of up to $117,000 and singles up to $132,000. Contributions are phased out between $184,000 and $194,000 for couples and $117,000 to $132,000 for singles for 2016.
I am an active participant in an employer sponsored retirement plan. May I contribute to a Roth IRA?
How much can I contribute to a Roth IRA?
How can I get more information?
We realize that sometimes you need more information to make your retirement decisions. If you’d like to talk with a Dedham Savings retirement expert, visit one of our branches or call our retirement planning department at 781-320-1458 and we’ll be happy to share everything we know.