Earnings grow tax free.
Contributions can generally be distributed tax free at any time.
Earnings can be distributed tax free if the Roth IRA holder first made a Roth IRA contribution at least five years ago AND one of the following events occurs:
- Contributions are never tax deductible.
Distributions not required to be taken by Roth IRA holders at age 70 ½.
Contributions can be made as long as the money contributed is from earned income.
Catch Up Contributions can be made when an individual reachs 50 years of age.
- Attaining age 59 ½
- Incurred a disability
- Purchasing a first home
- Death (payments to beneficiaries)
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