A Roth IRA is an individual retirement account for investors who are looking for tax-free growth potential.

WHY A ROTH IRA COULD MAKE SENSE FOR YOU

  • Once you reach age 59½, you may qualify for tax-free withdrawals of both Roth IRA contributions and any accumulated earnings.
  • You may realize tax savings if you think your tax bracket in retirement will be higher than your current rate.
  • There are no minimum distribution requirements.
  • For tax year 2014: May not be eligible if your income is over $129,000 for single filers and $191,000 for joint filers.
  • For tax year 2015: May not be eligible if your income is over $131,000 for single filers and $193,000 for joint filers.

Open a Roth IRA

No-Load Funds   T. Rowe Price offers no-load mutual funds with no sales charges or commissions. In addition, most of our funds have lower expense ratios than their Lipper averages.  
 
Save on IRA Fees   A $20 annual fee is charged for each IRA mutual fund account with a balance of less than $10,000 at the time the fee is assessed. There are no annual fees for mutual fund accounts with balances of at least $10,000; individuals with balances of at least $50,000; or if you qualify for T. Rowe Price Select Client Services. Annual fees will also be waived if the account utilizes all e-delivery options including statements, confirms and prospectuses and shareholder reports.  
 
    ELIGIBILITY REQUIREMENTS
Age   No age restrictions, but you must have earned income in order to make Roth IRA contributions.
     
Maximum
Income
  For tax year 2014: May not be eligible if your income is over $129,000 for single filers and $191,000 for joint filers.

For tax year 2015: May not be eligible if your income is over $131,000 for single filers and $193,000 for joint filers.

Roth IRA Contribution Limit Details
     
Minimum
Income
  Earned income must be equal to or greater than your annual contributions.
     
TAX ADVANTAGES
  • Tax-free growth potential.
  • You pay no taxes when you make qualified withdrawals after age 59½ and your account has been open at least five years.
Maximum   2014 and 2015 - $5,500 per year ($6,500 if you are age 50 or older) Use IRA AutoMax to automatically contribute the maximum amount every year. ROTH IRA CONTRIBUTIONS
     
Minimum   $1,000 to open an Account. $100 per transaction for any additional contributions which can be set up with our Automatic Asset Builder Service.
     
  Roth IRA contributions may be withdrawn at any time without taxes or penalties; earnings may be withdrawn tax-free and penalty-free once you reach age 59½ and the account has been open for at least five years.  
 
  Earnings may be subject to taxes and penalties if distributed before age 59½ and before the account is five years old.  
 

Penalties for withdrawals made before age 59½ are waived in the following cases. These exceptions allow tax-free and penalty-free distributions upon a five-year holding period:

  1. Death
  2. Disability
  3. First-time home purchase up to $10,000
Note: five-year holding period required for tax-free withdrawals regardless of investor's age.

Rules governing five-year holding period:
Five-year holding period begins January 1 of the tax year the Roth IRA was established by contribution. It does not restart when future contributions are made.

Unique five-year holding period required applies to Roth IRA assets previously converted from a Traditional IRA.

Redemptions of contributions are not subject to the five-year holding period.

You may be able to contribute to a Roth IRA for yourself or your spouse if you have earned income. You must also fall below the following Roth IRA income limits:

  • For married filing jointly - modified adjusted gross income of $193,000 for
    tax year 2015.
  • For single taxpayers - modified adjusted gross income of $131,000 for
    tax year 2015.
  • For married filing separately - $10,000 modified adjusted gross income for
    tax year 2015.

See the table of Roth IRA rules below for the exact Roth IRA contributions you can make at your adjusted gross income level.

Maximum Roth IRA Contributions for the 2015 Tax Year

Adjusted Gross Income, Investor Under Age 50

Single Contribution Limit Married/Filing Jointly Contribution Limit
$116,000 $5,500 $183,000 $5,500
$117,000 $5,133 $184,000 $4,950
$118,000 $4,766 $185,000 $4,400
$119,000 $4,400 $186,000 $3,850
$120,000 $4,033 $187,000 $3,300
$121,000 $3,666 $188,000 $2,750
$122,000 $3,300 $189,000 $2,200
$123,000 $2,933 $190,000 $1,650
$124,000 $2,566 $191,000 $1,100
$125,000 $2,200 $192,000 $550
$126,000 $1,833 $193,000 $0
$127,000 $1,466    
$128,000 $1,100    
$129,000 $733    
$130,000 $366    
$131,000 $0    

Adjusted Gross Income, Investor Age 50 or Older

Single Contribution Limit Married/Filing Jointly Contribution Limit
$116,000 $6,500 $183,000 $6,500
$117,000 $6,066 $184,000 $5,850
$118,000 $5,633 $185,000 $5,200
$119,000 $5,200 $186,000 $4,550
$120,000 $4,766 $187,000 $3,900
$121,000 $4,333 $188,000 $3,250
$122,000 $3,900 $189,000 $2,600
$123,000 $3,466 $190,000 $1,950
$124,000 $3,033 $191,000 $1,300
$125,000 $2,600 $192,000 $650
$126,000 $2,166 $193,000 $0
$127,000 $1,733    
$128,000 $1,300    
$129,000 $866    
$130,000 $433    
$131,000 $0    

You may be able to contribute to a Roth IRA for yourself or your spouse if you have earned income. You must also fall below the following Roth IRA income limits:

  • For married filing jointly—modified adjusted gross income of $191,000 for
    tax year 2014.
  • For single taxpayers—modified adjusted gross income of $129,000 for
    tax year 2014.
  • For married filing separately—$10,000 modified adjusted gross income for
    tax year 2014.

See the table of Roth IRA rules below for the exact Roth IRA contributions you can make at your adjusted gross income level.

Maximum Roth IRA Contributions for the 2014 Tax Year

Adjusted Gross Income, Investor Under Age 50

Single Contribution Limit Married/Filing Jointly Contribution Limit
$114,000 $5,500 $181,000 $5,500
$115,000 $5,133 $182,000 $4,950
$116,000 $4,766 $183,000 $4,400
$117,000 $4,400 $184,000 $3,850
$118,000 $4,033 $185,000 $3,300
$119,000 $3,666 $186,000 $2,750
$120,000 $3,300 $187,000 $2,200
$121,000 $2,933 $188,000 $1,650
$122,000 $2,566 $189,000 $1,100
$123,000 $2,200 $190,000 $550
$124,000 $1,833 $191,000 $0
$125,000 $1,466    
$126,000 $1,100    
$127,000 $733    
$128,000 $366    
$129,000 $0    

Adjusted Gross Income, Investor Age 50 or Older

Single Contribution Limit Married/Filing Jointly Contribution Limit
$114,000 $6,500 $181,000 $6,500
$115,000 $6,066 $182,000 $5,850
$116,000 $5,633 $183,000 $5,200
$117,000 $5,200 $184,000 $4,550
$118,000 $4,766 $185,000 $3,900
$119,000 $4,333 $186,000 $3,250
$120,000 $3,900 $187,000 $2,600
$121,000 $3,466 $188,000 $1,950
$122,000 $3,033 $189,000 $1,300
$123,000 $2,600 $190,000 $650
$124,000 $2,166 $191,000 $0
$125,000 $1,733    
$126,000 $1,300    
$127,000 $866    
$128,000 $433    
$129,000 $0    

Open a Roth IRA

Learn More about a Traditional IRA