Is a Roth IRA right for you?
Benefits of a Roth IRA
- Withdrawals of earnings are free from federal income tax, provided the Roth IRA has been in existence for five years and you are at least 59½.
- Contributions can be withdrawn anytime without federal income taxes or penalties.
- RMDs (Required Minimum Distribution) are not required.
- Distributions for your beneficiaries are tax-free.
Why open a TD Ameritrade Roth IRA?
- Breadth of Investment Choices - Including commission-free ETFs, no-transaction-fee mutual funds1, fixed income products, and much more.
- Empowering Education - We offer exclusive videos, useful tools, and webcasts to help you create a personalized retirement plan.
- Smart Tools – Plan and evaluate your retirement strategy with helpful tools like the IRA Selection Tool and Retirement Calculator.
- Fair and Objective Research - Take control with objective third-party research provided by Morningstar Investment Management, CFRA (formerly S&P Capital IQ), and Market Edge
Roth IRA vs. Traditional IRA
Need help deciding between a Roth IRA and a Traditional IRA? Try our IRA Selection Tool or view a comparison chart to find out which IRA is right for you.
Considering a Roth IRA conversion?
Consider taking advantage of every savings strategy you can. Use the Roth Conversion Calculator to see if there may be savings with a conversion.
Keep your old 401k working for you
Have you changed jobs or planning to retire? Learn about the benefits of rolling over your old 401k to a TD Ameritrade IRA.
Roth IRA Rules
To contribute, you must earn income. There are no age limits.
If you are single, $144,000 or less
If you file jointly, $214,000 or less
If you are single, $153,000 or less
If you file jointly, $228,000 or less
Are not tax deductible
Up to age 50: $6,000
Age 50+: $7,000
Non-income-earning spouse: $6,000 (into a separate IRA)
Up to age 50: $6,500
Age 50+: $7,500
Non-income-earning spouse: $6,500 (into a separate IRA)
Free from federal income tax when:
- The Roth IRA account has been open for at least 5 years
-You are age 59 1/2 or older
Required Minimum Distributions
Are never required
Before age 59 1/2 are subject to a 10% penalty in addition to any ordinary income tax that may be due