TD Ameritrade

Roth IRA

Is a Roth IRA right for you?

A Roth IRA is an individual retirement account that offers the opportunity for tax-free income in retirement. Annual contributions are taxed upfront and all earnings are federal tax-free when they are distributed according to IRS rules. This is much different than a Traditional IRA, which taxes withdrawals. Contributions can be withdrawn any time you wish and there are no required minimum distributions after age 70½.  If you are in a lower tax bracket today than you will be during retirement, a Roth IRA may be a smart choice.

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  • Contributions can be withdrawn anytime without federal income taxes or penalties.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 100+ commission-free ETFs1, no-transaction-fee mutual funds2, 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 Planner.
  • 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 Rules

Eligibility

To contribute, you must earn income. There are no age limits.

Income Limits

If you are single, $118,000 or less
If you file jointly, $186,000 or less

Contributions

Are not tax deductible

Maximum Contributions

Up to age 50: $5,500
Age 50-70 1/2: $6,500
Non-income-earning spouse: $5,500 (into a separate IRA)

Earnings

Grow tax-deferred

Distributions

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

Early Withdrawals

Before age 59 1/2 are subject to a 10% penalty in addition to any ordinary income tax that may be due

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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.

We're here for you

It takes as little as 15 minutes to open a TD Ameritrade Roth IRA and with our straightforward pricing there are no hidden fees. As always, if you have any trouble, our retirement consultants are here to help you every step of the way.

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