2018 Roth IRA Facts:
- Contribution limit for ages 49 and under: $5,500
- Contribution limit for ages 50 and older: $6,500
- This includes the $1,000 catch-up contribution
- This applies to anyone who turns age 50 in 2018, even if you turn age 50 on 12/31/2018
- Single filers must make less than $135,000/year to contribute to a Roth IRA
- You can contribute the full amount if you make less than $120,000/year
- The amount you can contribute is reduced by 10% for every $1,500 you make over $120,000/year
- Married filers filling jointly must make less than $199,000/year to contribute to a Roth IRA
- You can contribute the full amount if you make less than $189,000/year
- The amount you can contribute is reduced by 10% for every $1,000 you make over $189,000/year
- Roth IRA contributions are after-tax
- This means you don't pay taxes ever again on the contribution or any gains
- This also means you can't deduct the contributions on your taxes
- Penalty-free withdrawals start at age 59 1/2
- Early withdrawals have a 10% penalty
- Required minimum distributions don't apply to Roth IRAs