The Roth IRA became available beginning in
1998. Contributions to Roth IRAs are not tax-deductible, but qualified distributions
are then tax free later. You may wish to contact a tax advisor regarding
contribution eligibility and/or distribution rules.
Roth IRAs can give you great tax and investing advantages if you qualify. With a Roth IRA you can save and deposit up to $3,000 (age 50 and older $3,500) a year $6,000 for married couples ($7,000 if both 50 and older) if your adjusted gross income (AGI) doesn't exceed $95,000 for singles or $150,000 for married couples (it phases out after that, and is gone totally at $110,000 and $160,000 respectively).
Unlike traditional IRAs, there is no tax deduction for the money you put in, but the earnings you build can be withdrawn entirely tax free. Here are some key points: