<topic sku="core" tNum="289137" author="sallyh" xmlns="x-schema:hhTopicSchema.xml"><index><title>Learn about Roth IRAs</title><category fLocale="cdn">investing</category><klink type="cncpt">Tell me about Roth IRAs</klink></index>
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<p>A Roth IRA is a retirement account to which you contribute after-tax income. Like a traditional <glossary>IRA</glossary>, Roth IRAs have a maximum $3,000 total IRA contribution limit per person ($3,500 for individuals age 50 and older), subject to some restrictions. However, Roth IRAs differ from regular IRAs in the following ways:</p>
<ul>
<li>Your contributions don't reduce your taxable income. For example, if you earn $30,000 and contribute $2,000 to a Roth IRA, your taxable income is still $30,000.</li>
<li>Withdrawals from a Roth IRAs are not taxable at retirement. You can withdraw your contributions at any time without penalty. You can withdraw contributions and earnings penalty-free (generally after age 59 1/2) after you have the money in the account for at least five years.</li>
<li>A Roth IRA is fully available to individuals making up to $95,000 and couples making up to $150,000. It is phased out at higher income levels.</li>
<li>Roth IRAs have no maximum age limit for contributions and no mandatory schedule for withdrawals.</li>
</ul>
<p> Consult your financial advisor about whether the Roth IRA is right for you.</p>
