Roth IRA

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.

2018 & 2019 Contribution Limits:

  • $5,500 | $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.

Income Limits:

Tax Filing Status 2018 Tax Year 2019 Tax Year
Single or Head of Household $120,000 – $135,000  $122,000 – $137,000
Married Filing Jointly  $189,000 – $199,000  $193,000 – $203,000
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.