Roth IRA Overview

Max Contributions

Each year eligible individuals can contribute up to a certain amount of their after-tax income to their Roth IRA. There is no minimum amount required, though the max contribution is 5,500 dollars of after-tax income per year, until age fifty, where those individuals can contribute up to 6,500 dollars per year. Of course, these dollars must be earned income, which is any income individuals receive for services performed. This includes wages, self-employment income, salaries, tips, commissions, and bonuses. Earned income for Roth IRAs typically does not include interest, dividends, or pensions.

Continue reading to learn about the detailed advantages of Roth IRAs.