Roth IRA Rules

There are no age limitations; anyone can apply to open a Roth IRA account. All contributions made to your Roth IRA must come from earnings which are considered taxable compensation; this is in place to prevent people from taking advantage of the tax free savings and investment facility that does not pay tax to the IRS in first place. In 2009, an individual could open a Roth account if his income was no more than $105,000. For those wishing to open a married couple’s joint account, the combined income must not exceed $166,000. There is a gray area after the above mentioned limits; individuals with higher incomes will have to follow stricter rules. This option is available to individuals with incomes of $120,000 and for joint accounts the upper limit is $176,000.