Create a Roth IRA account

Create a Roth IRA account

A Roth IRA (A tax-deferred retirement plan for anyone with employment income. IRAs offer great investment flexibility. Maximum contribution is $2,000 per year. If you have no income but receive alimony, you still qualify for an IRA contribution.) is a retirement account that allows you to contribute after-tax dollars to an Individual Retirement Account (IRA) and withdraw funds tax-free during your retirement. Earnings grow tax-deferred and can be withdrawn tax-free in retirement after age 59╜ if the account has been in place for at least five years. The Roth IRA permits certain early withdrawals without penalty (for example, the purchase of a first home), sets no maximum age limit for contributions, and imposes no schedule for withdrawals. One key limit the Roth IRA adds is a maximum income level; joint filers may contribute the lesser of $2,000 or 100% of their earned income into a Roth IRA as long as their combined income is below $150,000. Consult your financial advisor to determine if the Roth IRA is right for you.

HereÆs how to create a Roth IRA investment account in Money.

1 On the navigation bar (The strip at the top of the Money screen where you can click to go to the different areas in Money.), click Investments.

2 Click New at the bottom of the screen. Click A new investment account and then follow the instructions on the screen.

3 When asked what kind of account you want to set up, click Retirement Account, and then click Next.

4 Follow the instructions. When asked what type of retirement account you want to create, choose Roth IRA, and then click Next.

If you are a Financial Suite user, Money will ask you some questions about your retirement plans that will be added to the Lifetime Planner.

5 The Roth IRA account appears in your Investment Portfolio.

How do I update my retirement account holdings?