Skip to main content

Posts

Showing posts with the label 2021rothlimits

What is a Roth IRA? | Roth IRA Contribution Limits 2021

What is a Roth IRA? A Roth IRA is an individual retirement account (IRA) that allows for qualified withdrawals in various conditions. Contributions to a Roth IRA are made with after-tax dollars, which grow in the Roth IRA account tax-free. In this video, I explain some of the basics regarding Roth IRA's, Roth IRA distribution rules, Roth IRA early withdrawals, Roth IRA Max Contributions, and some examples on how the earlier you start contributing, the better. Roth IRA limits are determined on a yearly basis. For 2021 the Roth IRA contribution limits are $6,000 for those under 50. For individuals over 50, the Roth IRA contribution limits are $7,000. Roth IRA's are also subject to income limits. For example, the Roth IRA income limit for someone filing their tax return as single, the income limit is $140,000. For married couples, the limit is $208,000. Between 2020 and 2021, the max Roth IRA contrition remained unchanged. Also, the Roth IRA withdrawal rules remained ...