Terms of Use One of the greatest benefits of a Roth IRA is the absence of Required Minimum Distributions (RMDs) during the owner's lifetime. Original Owner: No RMDs ever. Your funds can grow tax-free indefinitely. Workplace Roth Plans: As of 2026, Roth 401(k) and Roth 403(b) accounts also no longer require RMDs for the original owner. Inherited Roth IRAs: Most non-spouse beneficiaries must withdraw the total balance within 10 years of the owner's death, though these distributions a  More...

Terms of Use Traditional IRA assets pass directly to your beneficiaries, bypassing probate. However, the tax rules for 2026 are strict regarding how quickly those funds must be withdrawn. The 10-Year Rule Most non-spouse beneficiaries (like adult children) must withdraw the entire account balance within 10 years . If you died after you began taking Required Minimum Distributions (RMDs), your heirs must also take annual withdrawals during that 10-year window. Tax Treatment: Every dollar withdra  More...

Terms of Use The IRS uses MAGI to determine if any or all of your IRA contribution is deductible and if you are eligible for premium tax credits. The higher your MAGI, the fewer deductions you can take on IRA contributions. There is a maximum MAGI when if met, IRA deductions aren't allowed. While you can still contribute to an IRA, but you won't be able to deduct any of the contributions on your tax return. Adjusted Gross Income (AGI) AGI represents your taxable income. AGI is defined as  More...

Terms of Use IRAs are a great way for you to save for the future. Your IRA can consist of a range of investments from savings accounts, stocks, ETFs, bonds, and certificates of deposit or share certificates. You can contribute up to a certain limit each year into your IRA and if you're over 50, you are allowed an additional catch up contribution. The tax advantages of a Traditional or Roth IRA depend on your annual income and whether you are covered by your company's retirement plan.  More...

Terms of Use Yes , you can contribute to a Roth IRA after age 70-1/2, provided the contribution does not exceed your earned income for the year and you meet Modified Adjusted Gross Income (MAGI) eligibility guidelines. There is currently no age limit for contributions to a Roth IRA.

Terms of Use Designating a beneficiary is the most important step in protecting your Roth IRA. Without a named beneficiary, the account typically goes to your estate, which can trigger shorter withdrawal windows and legal costs. The 10-Year Rule for Most Inheritors For most non-spouse beneficiaries (like adult children or friends), 2026 rules require the entire account to be emptied by the end of the 10th year following the year of death. While you don't always have to take a specific amou  More...

Terms of Use What is a Roth IRA? The purpose of a Roth IRA is to put away money for retirement. Roth IRAs offer tax-free growth and tax-free qualified withdrawals in retirement. Roth IRAs are funded with after-tax dollars unlike Traditional IRAs, so the contributions are not tax deductible but qualified distributions are tax-free. To be classified a Roth IRA, the account or annuity must be designated as a Roth IRA when it is set up. Under recent law, employers can now offer Roth SEP IRAs and  More...

Terms of Use Yes. If you contribute more than the allowed limit ($7,500 for those under 50; $8,600 for those 50+ in 2026), the IRS imposes a 6% excise tax on the excess amount for every year it remains in the account. How to Avoid the 6% Penalty To avoid the excise tax entirely, you must withdraw the excess contribution and any earnings (interest/gains) generated by that money by the due date of your tax return, including extensions (typically October 15 of the following year). Tax on Earnings  More...

Terms of Use What Is a 403(b)? A 403(b) plan is a retirement savings plan offered by certain employers — primarily public schools , nonprofit organizations , hospitals , and some church-related organizations . It lets eligible employees save for retirement with tax-advantaged contributions . Traditional 403(b): Contributions are made with pre-tax dollars , reducing your taxable income now, and taxes are paid when you withdraw in retirement. Roth 403(b): Contributions are made with after-ta  More...

Terms of Use Legally, they are the same account type. However, they are treated differently regarding withdrawal rules and deadlines. You do not need separate accounts for each year or each type of funding; one Roth IRA can hold everything. Feature Regular Contribution Roth Conversion 2026 Limit $7,500 ($8,600 if 50+) Unlimited Deadline April 15, 2027 December 31, 2026 5-Year Rule Applies to earnings only Each conversion has its own 5-year clock