The Taxpayer Relief Act of 1997 created the Roth IRA, which allows tax-free withdrawals after age 59 1/2, provided certain guidelines are met. Please refer to the IRS website www.irs.gov for details of the Roth IRA guidelines and contribution amounts. Contributions to a Roth IRA are not deductible and the maximum annual contribution in 2016 is the lesser of 100% of compensation or $5,500. Taxpayers who are age 50 or older may contribute an additional $1,000. Non-working spouses may also contribute up to $5,500 ($6,500 if age 50 or older) to a Roth IRA. Contributions may be made beyond age 70½. There are no required minimum distributions on Roth IRAs.
Please Note
- For IRA applications started under IB-UK, IB-CE, IB-EU and IB-IE, applicants are required to declare US as tax residency before they can proceed to the next step. If they are non-residents and declare other countries as tax residency, they will not be able to proceed to W8 to fill in their SSN.