Roth IRA

• A Roth IRA is less restrictive than traditional IRAs. Earnings on contributions accumulate tax-free.
• Contributions are not deductible for federal income tax purposes.
• Contributions may be withdrawn at any time, for any reason, tax free.
• No 10% penalty for early withdraw (subject to certain conditions) on traditional IRAs rolled into a Roth IRA. However, the distribution will be considered income for federal tax purposes.
• Contributions can be withdrawn tax free at any time.
• Earned dividends can be withdrawn to buy a first home, after five years.
• Contributions from earned income can be made after age 70.5.
• Distributions are not required at age 70.5.