A Roth individual retirement account (IRA) is a special type of account allowing an individual to save and invest post-tax income without paying additional taxes when the funds are used in retirement.

In order to contribute to a Roth IRA, you must have earned income and have paid income taxes on it. Additionally, your modified adjusted gross income must be below certain levels, depending on tax filing status (see table below).

Funds can be invested in a variety of securities such as stocks, bonds, and ETFs. Investments grow and will not be taxed again as long as funds are taken as qualified withdrawals. To be qualified, individuals must be age 59.5 or older and have had the IRA for at least 5 years. Contributions, but not earnings, can be withdrawn at any time without penalty.

Tax filing statusModified AGI (2019)Contribution limit

SingleLess than $122,000$6,000 (or $7,000 if 50 or older)
Single$122,000 to $136,999Partial contribution
Single$137,000 or moreNot eligible
Married filing jointlyLess than $193,000 $6,000 (or $7,000 if 50 or older)
Married filing jointly $193,000 to $202,999Partial contribution
Married filing jointly $203,000 or moreNot eligible