Roth IRA

A Roth IRA is a retirement account where all the money is taxed prior to going into the account. Any interest made is tax-free when used for retirement.

In 2018, your total contributions to your traditional and Roth IRAs cannot be more than:

  • $5,500 ($6,500 if you’re age 50 or older), or
  • your taxable compensation for the year, if your compensation was less than this dollar limit.

More information from the IRS regarding Roth IRAs can be found here.