Roth IRA Rules 2017 & Beyond Roth – IRA Rules 2017 & Beyond: Eligibility, Income, Contribution Limits and More Call Toll-Free: 1-844-612-7162

Important Note: this information is about the 2015 tax year. The 2016 deadline is April 18 contribution limits will remain the same for 2016, however income limits have increased slightly.

The term “rules” is a subjective word in reference to a Roth IRA. This video will teach you the correct eligibility criteria of what you can and cannot do with a Roth IRA account once you have one yourself.

The first rule for a Roth IRA is eligibility. There are certain rules of eligibility for new Roth IRA’s and additional rules regarding eligibility for investors who already have Roth IRAs.

Are you eligible for a Roth IRA? They are two elements in play, which will determine if you can open a new Roth IRA account or continue investing into an existing Roth IRA account. The first element is your current year income and the second element is your tax filing status.

The first element or requirement is that you have to have “earned” income that means income you earned from working which is usually in the form of a salary, hourly wages or profits earned from a small business.

Once you are eligible based on your current year income then you need to make sure that you aren’t going to make more in the federal government allows you for Roth IRA account holders. The amounts are different for each person depending on your personal tax status.

What is My MAGI? MAGI is the modified adjusted gross income, which is what you’re earning limits are based on. It is calculated by taking the adjusted gross income from your tax forms and it adding back deductions for things like student loan interest and higher education expenses.

What are your contribution limits? There is one quirk in the law system that says you have to make a contribution for the current tax year within 15 months so if you set up an account on January it must have a contribution by the next April.

There is another thing you have to know and that is about earned income. If your earned income is less then you’re eligible contribution amount your maximum contribution amount equals your income. There are a few other eligibility related features that make Roth IRAs special. The first thing is that you can make contributions at any age. The second thing is you are not required to make a mandatory distribution from a Roth IRA, whereas with a traditional IRA account holders must start withdrawing at age 70 1/2. The third special eligibility related feature of a Roth IRA is that a non-working spouse can open a Roth IRA based on the working spouse is earnings and the couples tax filing status. The other thing is that you can still make your annual contribution if you also convert money from a tax deductible account like a traditional IRA to a Roth IRA account in the same year. The fifth eligibility related feature of a Roth IRA is that you can contribute to a Roth IRA even if you participate in a retirement plan through your employer.

There is a five-year rule for making withdrawals from Roth IRAs there are also ways to make penalty free withdrawals and investors can undo a Roth conversion. To learn more about these please see our other YouTube videos

There are many benefits to rolling over your IRA to gold. For your free gold IRA rollover kit Visit: or call: 1-844-612-7162

What is a Roth IRA
2015 Roth IRA Rules
2016 Roth IRA Rules
Traditional IRA vs. Roth IRA
Roth IRA Withdrawal Rules
Roth IRA Calculator
Roth IRA Contributions Rules
Roth IRA Distribution Rules
Roth IRA Eligibility
Roth IRA Withdrawal
“Roth IRA Rules”

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