Roth IRA 

Single individuals qualify for a Roth IRA if their Adjusted Gross Income (AGI) is $110,000 or less. Married individuals filing a joint return qualify for a Roth IRA if their combined AGI is $160,000 or less. Only partial contributions are allowed by single taxpayers with an AGI between $95,000 and $110,000 and by married taxpayers filing jointly with an AGI between $150,000 and $160,000.

Contributions to the Roth IRA are not tax deductible. However, distributions from the Roth IRA are tax free five years after the initial contribution, provided that one of the following triggering events occurs:

-You attain age 59
- Death
- Disability
- Withdrawal by a first time home buyer to help toward the purchase of a principal residence.

You may convert your IRA to a Roth IRA only if your Adjusted Gross Income is $100,000 or less, and if you are married, you file a joint tax return.

Changing to a Roth IRA means that the distribution from your regular IRA will be subject to taxes, but not penalties, so you need to calculate the pros and cons carefully. Whether or not you should actually convert your IRA to a Roth IRA to take advantage of tax-free distributions is a complex matter that you should discuss with a qualified tax advisor.

Establishing your Roth IRA is easy