A Roth individual retirement account (IRA) is a tax-advantaged way to save for retirement using after-tax contributions. It also gives you tax-free growth, which means your money can g♏row 🐼much faster since you don't pay taxes on your investment earnings.

Withdrawals from a Roth IRA are tax-free, but you must wait until you're 59½ and have held the account for at least five years to withdraw your earnings. You can easily fund a Roth IRA directly from a bank account, but there are other methods, including 澳洲幸运5官方开奖结果体彩网:rollovers, conversions, and transfers—all of which we explain below.

Roth IRA Eligibility Requirements

The 澳洲幸运5官方开奖结果体彩网:Internal Revenue Service (IRS) sets limits on who can contribute to a Roth IRA and the amount you can set aside each year. Your eligibility is based on your 澳洲幸运5官方开ꦛ奖结果体彩网:modified adjusted gross inco🐠me (MAGI) and your tax filing status, and contributions must come from taxable income.

You can use the table below to see if you qualify and whether you can make a full or partial contribution:

Contribution Limits and Deadlines

You have until April 15 to contribute to your Roth IRA (or any IRA) for the previous tax year. For example, this means you have until April 15, 2026, to fund your Roth IRA for the 2025 tax year. If you qualify, you are limited to how much you can contribute each year:

• The maximum contribution limit is $7,000 if you are younger than 50
• The maximum contribution limit is $8,000 if you are 50 and older, which includes a $1,000 澳洲幸运5官方开奖结果体彩网:catch-up contribution

This limit is adjusted annually for 澳洲幸运5官方开奖结果体彩网:inflation.

Follow these steps to determine your partial contribution:

1. Subtract the lower limit in the chart above from your MAGI.
2. Divide that result by $15,000 ($10,000 if you're married filing jointly)
3. Multiply this limit by the maximum contribution limit for your age limit
4. Subtract the result from your age group's maximum contribution limit

If you're a single filer younger than 50 with a MAGI of $160,000, here's how you'd calculate your partial contribution limit:

1. $160,000 - $150,000 = $10,000
2. $10,000 ÷ $15,000 = 0.67
3. 0.67 x $7,000 = $4,690
4. $7,000 - $4,690 = $2,310

How to Fund a Roth IRA

Roth IRAs are a great way to save for your retirement. You have several flexible options, including regular contributions with cash or a lump-sum contribution. You can also convert a 澳洲幸运5官方开奖结果体彩网:traditional IRA to a Roth IRA or do a backdoor conversion to a Roth IRA if you have 🐠non-deductible contributions in a traditional IRA.

Rollovers are possible if you want to move money from your employer's retirement plan to a Roth IRA. You can make a direct transfer from one Roth IRA to another without incurring any tax liabilities. You can also contribute to a 澳洲幸运5官方开奖结果体彩网:spousal IRA for your spouse if they have little to no 澳洲幸运5官方开奖结果体彩网:earned income, as long as you do.

• Regular contributions: Fund your account using cash or with a lump sum contribution.
• Roth conversion: You can convert funds from a traditional IRA to a Roth IRA if your annual income is too high. Non-deductible contributions from a traditional IRA can also be converted using the 澳洲幸运5官方开奖结果体彩网:backdoor Roth IRA option.
• Rollovers: Money from an employer-sponsored plan, such as a 401(k), can be rolled into a Roth IRA.
• Transfers: Transfers from one Roth IRA to another incur no taxes or penalties. You may choose to do this if you want to change financial institutions or you want better investment options.
• Spousal IRA: A spousal IRA allows you to save money for your spouse if they don't have any or enough earned income, as long as you do. Keep in mind that the benefits go to your spouse, the one named on the Roth IRA.
  

Choos🐓ing the Right Institution for Your Roth IRA

Before you commit to a broker for your Roth IRA, it's important to weigh several options. This includes:

• Investment options available, such as mutual funds and 澳洲幸运5官方开奖结果体彩网:alternative investments
• Fees and costs, including management, administration, and trading fees
• Account minimums, if required
• Account features and an intuitive user interface
• Customer service that is accessible via various contact methods
• Security and protection

Best Brokers for Roth IRAs

The Bottom Line

A Roth IRA is a retirement account you can fund with after-tax dollars that grow on a tax-free basis. You can begin withdrawing from your Roth IRA at any time without penalty. But your earnings must be held in an account that's open for at least five years, and you must be at least 59½, otherwise you will incur a 10% withdrawal penalty and be taxed. Funding your Roth IRA can be done using flexible options like direct contributions, conversions, rollovers, transfers, and even spousal IRAs for your spouse.