Roth IRA
What is a Roth IRA?
A Roth IRA is a type of individual retirement account where your contributions are subject to federal and state taxes. The advantage? Earnings on a Roth IRA are tax-free if your Roth account has been open for at least five years and the savings are withdrawn after age 59½. Contributions (not earnings) can be withdrawn tax-free at any time, and there is no required minimum distribution at or after age 73.
Tax-Free Growth, Tax-Free Withdrawals
Roth IRAs offer powerful tax advantages, including tax-free growth and withdrawals—so you can keep more of what you save for retirement.
- Contributions are not tax-deductible.1
- Earnings grow tax-free, subject to some limitations.
- Tax-free withdrawals of original contribution are allowed; potentially tax-free withdrawal of earnings if part of a qualified withdrawal.
Who Can Contribute?
Available at Any Age
Single individuals that have a modified Adjusted Gross Income (AGI) of up to $165,000 in 2025 to make a full contribution.12
Married individuals that have a modified Adjusted Gross Icome (AGI) of up to $246,000 in 2025 to make a full contribution.12
Withdrawals, penalties and distribution requirements
- Contributions can be withdrawn anytime without taxes or penalties.
- Earnings can be withdrawn, without taxes or penalties, if you are 59-1/2 and your account has been open five years or more.
- There are no distribution requirements.
1. Not intended as tax advice. Please consult a tax professional. The above descriptions are meant to be educational in nature. Certain restrictions apply to every type of IRAs to take full advantage of their favorable tax treatment. It's important to understand the requirements and limitations on the various IRAs. Sandia Area Membership is required for all accounts.. 2: According to IRS.gov IRA contribution limits.
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