A Roth individual retirement account (IRA) lets you save and invest after-tax dollars. Funds contributed to a Roth IRA have already been taxed. Any earnings grow tax-free if certain requirements are satisfied—and there are no additional taxes on regular contributions because you have already paid taxes on these funds.
In a Roth IRA, you can make investments to potentially increase the value of your account. Only a few investments are restricted by the Internal Revenue Service (IRS).
Roth IRA contributions must be made with earned income, and that income must fall within certain Modified Adjusted Gross Income (MAGI) limits. View the specific MAGI limits for Roth IRA accounts here.
- Tax-free growth
Any earnings on contributions made to your account will grow tax-free. All regular contributions made to a Roth IRA can be withdrawn tax-free at any time, if certain requirements are satisfied, because your contributions have already been taxed.
- No distribution requirements
A Roth IRA does not require you take distributions based on age, unlike other tax-deferred retirement plans such as a traditional IRA or a 401(k) plan.
- Tax-free withdrawals
Roth IRA distributions, including the withdrawal of earnings, may be tax-free if certain requirements are met.
- First-time home buyer
Up to $10,000 can be withdrawn from a Roth IRA, penalty free, if the money is used to acquire a principal residence for a first-time home buyer. The home buyer must be the Roth IRA’s owner, their spouse, or their lineal ancestors and descendants. The individual cannot have owned a home in the previous 24 months.
NOTE: Please visit www.irs.gov for complete rules and regulations regarding Roth IRAs. Certain restrictions apply regarding prohibited transactions.
It’s easy to get started investing in a Roth IRA. Open an account in just a few minutes on our online portal.
Frequently Asked Questions
about Roth IRAs
What are the fees for opening a Roth IRA?
Most custodians of traditional assets collect fees and/or commissions based off of the amount of trades or recommendations of investment choices. Provident Trust Group offers a flat-rate annual fee.
View our fee schedule for full, transparent breakdown of our fees.
What is the maximum allowable contribution?
Our COLA limits document provides a comprehensive overview of how much you can contribute to your Roth IRA.