Individual Retirement Accounts • Roth IRAs • Contributions • Income Limits • Distributions • Rollovers & Conversions
Roth IRA contributions are never tax-deductible, but qualified withdrawals are completely tax-free. There is no age limit for contributing to a Roth IRA. The 2026 contribution limit is $7,500 ($8,600 if age 50+), subject to income limits. For 2026, the phase-out range is $153,000–$168,000 (single) and $242,000–$252,000 (married filing jointly). Roth IRAs are called “backloaded” IRAs because the tax benefit comes at withdrawal, not contribution.
To take a tax-free (qualified) distribution, funds must satisfy the five-year holding period AND one of: age 59½, death, disability, or first-time homebuyer (up to $10,000). Nonqualified distributions are taxed FIFO — contributions first, then earnings. There is no 10% early withdrawal penalty on Roth IRAs (except on converted funds within 5 years). Roth IRAs have no required minimum distributions during the owner’s lifetime. Since 2010, any taxpayer regardless of income may convert a traditional IRA to a Roth IRA.