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Roth IRA

A Roth IRA allows you to make contributions with money on which you've already paid taxes. Withdraw your contributions tax-free and penalty-free at any time, provided you meet certain conditions.

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Why choose a Firstrade Roth IRA?

  • No account fees or minimum to open an account
  • Earnings and withdrawals can potentially be tax-free
  • Get guidance choosing from a wide range of investment options
  • $0 commission fees

Roth IRA Rules

Tax Advantages
  • Non tax-deductible contributions
  • Tax-free* earnings
  • Qualified withdrawals are tax-free
Eligibility Requirements Your income impacts how much you can contribute. To make a full contribution, you must have a Modified Adjusted Gross Income:

For tax year 2020:
Single: Less than $124,000
Married filing jointly: Less than $196,000
Contribution Limits Per Year For tax year 2019:
$6,000
$7,000 if age 50 or older

For tax year 2020:
$6,000
$7,000 if age 50 or older

Roth Conversion (converting a Traditional IRA to a Roth IRA) is available.*
Withdrawals
  • Contributions can be withdrawn at any time without taxes or penalties
  • Earnings can be withdrawn with no taxes or penalties as long as you are at least 59½ yrs. of age and the account had been open for at least 5 years
  • No distribution requirements

* Subject to certain restrictions. Please consult with your tax advisor.

More Information

Learn about IRAs
Learn about the basics of retirement, from types of accounts available to taking minimum required distributions (MRDs).

Considering a Roth IRA conversion?
See how a Roth IRA conversion might work for you.

How to rollover an old 401(k) to Firstrade
Step-by-step guide on how to rollover an old 401(k) to Firstrade.