Forms and Requests Received Will be Processed in 24-48 hours of Quest Receiving the Form.
A Roth IRA is a retirement savings account that allows your money to grow tax-free. This is an after-tax account, meaning the IRA owner of a Roth must pay taxes upfront for all money contributed, however all growth within the account is tax deferred, but if you take a qualified distribution, it can be potentially tax free. This is a major advantage for the younger population, as they can make contributions over a lifetime and watch their funds grow. In 2017 & 2018, the contribution limit for a Roth IRA is $5,500, and also allows for a $1,000 “catch-up” for those over the age of 50.
2019 & 2020 Contribution Limits:
- $6,000 | $6,000
- $1,000 catch-up (Age 50+)
What are the benefits of a Roth IRA?
- Qualified withdrawals (distributions) are tax-free because you already paid taxes on the contributions.
- You can make contributions even if you are over 70.5 as long as you have W-2 or Schedule C income.
- There are no Required Minimum Distributions (RMD).
Roth IRA withdrawals you NEED to know
- If you are over 59.5, you may withdraw as much as you like as long as your Roth IRA has been open for at least 5 years.
- If you are under 59.5, you may withdraw the exact amount of your Roth IRA contributions without penalty.
It’s easy to invest with a Self-Directed Roth IRA!
- Open a Roth IRA account at Quest
- Fund your account by making a contribution, transferring from another Roth account, or rolling over an old 401K.
- Invest in what you know best!
Submit Your Forms: All forms can be mailed or faxed to any of our locations or emailed to NewAccounts@QuestTrust.com.
|Tax Filing Status||2019 Tax Year||2020 Tax Year|
|Single or Head of Household||$122,000 – $137,000||$124,000 – $139,000|
|Married Filing Jointly||$193,000 – $203,000||$196,000 – $206,000|
|Married Filing Separately||$0 – $10,000||$0 – $10,000|
Qualified distributions V Non-Qualified distributions
A qualified distribution from a Roth IRA is tax-free and penalty free, providing the 5 year aging requirement has been satisfied and one of the following has been met:
- Over age 59.5
- Death or disability
- Qualified first-time home purchase
A non-qualified distribution is subject to taxation of earnings and a 10% additional tax unless an exception applies. Several exceptions exists that enable Roth IRA account holders to withdrawal cash from Roth IRA’s that otherwise would be subject to income taxes and a 10% penalty:
- You have un-reimbursed medical expenses exceeding 7.5% of your Adjusted Gross Income (AGI).
- You are paying medical insurance premiums after losing your job.
- The distributions are not more than your qualified higher educational expenses (for yourself or eligible family members).
- The distribution is due to an IRS levy of the qualified plan.
- The distribution is a qualified reservist distribution.
- The distribution is a qualified disaster recovery assistance distribution.
- The distribution is a qualified recovery assistance distribution.