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A Roth individual retirement arrangement, Roth IRA, is a tax-favored account or annuity set up in the United States, solely for the benefit of you and your beneficiaries. You can contribute to a Roth IRA if, you have taxable compensation and your modified adjusted gross income is within certain limitations. Regardless of the amount of your adjusted gross income, you may be able to convert amounts from either a traditional, SEP, or SIMPLE IRA into a Roth IRA. You also may be able to roll over amounts from a qualified retirement plan to a Roth IRA. A Roth IRA differs from a traditional IRA in that contributions aren’t deductible and, qualified distributions aren’t included in income. For information on contributions and the limitations, please refer to Chapter 2 of Publication 590-A, Contributions to Individual Retirement Arrangements.
The newest form of a Roth IRA account developed by the Department of the Treasury to help encourage retirement savings is called myRA, My retirement account. It’s a simple, safe, and affordable retirement savings option available through employers to help more people begin to save for retirement. It follows all of the regular rules for a Roth IRA and the investments are backed by the United States Treasury. For more information, visit myRA page on IRS website.
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LEARN MORE ABOUT: IRA Accounts
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