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Tutorial: Roth IRA Summary

  • Roth IRAs can be established by anyone. However, only eligible individuals can make regular Roth IRA contributions
  • Custodians are subject to certain disclosure requirements when they establish Roth IRAs for clients. Failure to meet these requirements can result in a breach of compliance
  • For conversions that occur before January 1, 2010, individuals must have a MAGI of $100,000 or less and cannot file as ‘married-filing-separately.
  • Roth IRAs are subject to rollover and transfer rules that are similar to those that apply to traditional IRAs.
  • Contributions in excess of the statutory limit can result in the Roth IRA owner owing the IRS penalties, unless the excess is timely corrected.
  • Amounts that are converted and subsequently recharacterized cannot be reconverted before a predefined period.
  • Distributions may be subject to income tax and or early distribution penalties, unless certain requirements are satisfied. 


                    I.            Tutorial: Roth IRA Contributions
                  II.            Tutorial: Excess Roth IRA Contributions
                III.            Tutorial: Roth IRA Conversions
               IV.            Tutorial: Roth IRA Reconversions
                 V.            Tutorial: Roth IRA Rollovers and Transfers