Roth IRA

A Roth IRA can be an excellent way to save money for retirement that grows tax-free. With this individual retirement account, the funds you withdraw are not taxed, making this a smart savings strategy if you think your taxes in retirement will be higher than they are now. Contact a Fifth Third Financial Professional to add a Roth IRA to your retirement-savings toolbox.

Key Benefits*:

  • Earnings may grow tax-free. However, contributions are not tax-deductible
  • Offers an opportunity to create tax-free income during retirement
  • Heirs may also benefit from tax-free growth and income
  • No minimum investment requirement to open a Fifth Third Securities Roth IRA
Get advice on opening a Roth IRA

What is a Roth IRA?

A Roth IRA is an individual retirement account that allows you to invest after-tax contributions. Unlike a Traditional IRA, distributions from Roth IRAs may be tax-exempt at withdrawal, an important consideration when you’re retired. In addition, contributions can be withdrawn at any time, without taxes or penalties. Once you are age 59 ½. and the account has been open for five years or more, earnings may be withdrawn tax-free and penalty free.

Roth IRA Eligibility

The primary eligibility requirement for opening a Roth IRA is having earned income. Earned income includes money from wages, salaries, tips, bonuses, commissions, and self-employment. Roth IRAs also have income limits that impact eligibility for high earners. If your modified adjusted gross income (MAGI) is less than $138,000 for individuals or $218,000 for those married filing jointly, you can contribute the maximum amount. The contribution limits begin to phase out with MAGI above those limits. Contact a Fifth Third Financial Professional to discuss adding a Roth IRA to your savings strategy.

Roth Contribution Limits

In 2023, account holders can contribute a maximum amount of:

  • $6,500 if you’re under age 50
  • $7,500 if you are age 50 or older

You have from January 1, 2023, to April 15, 2024 to contribute to an IRA for the 2023 tax year

Open a Roth IRA

Is a Roth IRA right for you? For more information on Roth IRAs and retirement investments, contact a Fifth Third Securities Financial Professional, visit a Fifth Third Branch near you, or call us at 1-800-416-8714.