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Tutorial: Introduction to Roth IRAs

 

 
A Roth IRA is retirement savings vehicle that can be established by individual taxpayers. The Roth IRA bears many similarities to the traditional IRA as well as some distinct differences. Unlike contributions to a traditional IRA, contributions to Roth IRAs are not deductible and are also not subject to age limits. Additionally, Roth IRA owners are not subject to the required minimum distribution (RMD) rules.
 
Roth IRAs can be funded through several means, which includes:
 
In addition to meeting income/compensation requirements, individuals are required to meet certain income requirements in order to utilize some of the funding methods.
 
Earnings in a Roth IRA accrue on a tax-deferred basis, but are tax-free if certain requirements are met. In some cases, distributions are subject to ordering rules, which determine the source of funding from which the distribution occurs, so as to determine whether the early distribution penalty, and/or income tax applies.
 
This tutorial provides an explanation of the key features of Roth IRAs, including operational and compliance requirements.
 
                    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