By Rich Mangiameli Thanks to the tax benefits, Roth individual retirement accounts (IRAs) can be a great way to save for retirement. Here is what you need to know.

1. You (or your spouse) must have earned income to contribute to a Roth IRA.
2. Roth IRA contributions are not tax deductible. You can withdraw your contributions at any time, without taxes or penalties.
3. Earnings may be withdrawn tax free as long as the distribution is qualified. A Roth IRA distribution is qualified if it is made after five-tax years period beginning with the first tax year for which a contribution was made to a Roth IRA set up for your benefit and you’re at least age 59 ½.

A Roth IRA distribution is also qualified regardless of the age if it is taken after the five-tax year period described above and you have died, become disabled or use up to $10,000 for the first-time home buying expenses.

4. As long as you have earnings and meet the Roth IRA income limits, you can make contributions of up to $5,500 for 2015 or $6,500 if you are age 50 or older. The contribution limit applies to all IRA contributions (Roth and traditional) for the year, excluding rollover contributions.
5. To make a Roth IRA contribution for 2015, your modified adjusted gross income (AGI) must be less than $131,000 if you’re single or $192,000 if you’re married filing jointly. The maximum contribution is gradually reduced once you have modified AGI of $116,000 (single) or $183,000 (married filing jointly).
6. If you’re eligible, you can contribute to a Roth IRA and participate in your employer’s retirement plan at work.
7. Another way you can fund a Roth IRA is by rolling over assets from a designated Roth Account in a qualified retirement plan such as a 401(k). Check your plan’s provisions for details.
8. If you take a nonqualified distribution from a Roth IRA (e.g. it doesn’t satisfy IRS requirements), regular contributions are distributed first and are not taxable.
9. Unlike a traditional IRA, you can continue contributing to a Roth IRA after age 70 1/2, assuming you have earnings.
10. You’re required to start withdrawing money at age 70 ½ from most other retirement accounts. But not Roth IRAs. If you don’t need the money, you can let your Roth IRA continue to grow tax free for the rest of your life.

Annuities are excellent products to use to fund your Roth IRA. Call Rich Mangiameli for more details @ 800-397-9999 ext. 3415.