Roth IRA
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A Roth IRA can be an excellent way to save money for retirement that grows tax-free. With this individual retirement account, the funds you withdraw are not taxed, making this a smart savings strategy if you think your taxes in retirement will be higher than they are now. Contact a Fifth Third Financial Professional to add a Roth IRA to your retirement-savings toolbox.
Key Benefits*:
- Earnings may grow tax-free. However, contributions are not tax-deductible
- Offers an opportunity to create tax-free income during retirement
- Heirs may also benefit from tax-free growth and income
- No minimum investment requirement to open a Fifth Third Securities Roth IRA
What is a Roth IRA?
A Roth IRA is an individual retirement account that allows you to invest after-tax contributions. Unlike a Traditional IRA, distributions from Roth IRAs may be tax-exempt at withdrawal, an important consideration when you’re retired. In addition, contributions can be withdrawn at any time, without taxes or penalties. Once you are age 59 ½. and the account has been open for five years or more, earnings may be withdrawn tax-free and penalty free.
Roth IRA Eligibility
The primary eligibility requirement for opening a Roth IRA is having earned income. Earned income includes money from wages, salaries, tips, bonuses, commissions, and self-employment. Roth IRAs also have income limits that impact eligibility for high earners. If your modified adjusted gross income (MAGI) is less than $150,000 for individuals or $236,000 for those married filing jointly, you can contribute the maximum amount. The contribution limits begin to phase out with MAGI above those limits. Contact a Fifth Third Financial Professional to discuss adding a Roth IRA to your savings strategy.
Roth Contribution Limits
In 2024 and 2025, account holders can contribute a maximum amount of:
- $7,000 if you’re under age 50
- $8,000 if you are age 50 or older
You have from January 1, 2024, to April 15, 2025 to contribute to an IRA for the 2024 tax year and You have from January 1, 2025, to April 15, 2026 to contribute to an IRA for the 2025 tax year.
Open a Roth IRA
Is a Roth IRA right for you? For more information on Roth IRAs and retirement investments, contact a Fifth Third Securities Financial Professional, visit a Fifth Third Branch near you, or call us at 1-800-416-8714.