Roth IRA

roth

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 Contribution Limits:

  • $5,500
  • $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!

[PDF] DOWNLOAD ROTH IRA STARTER KIT

CLICK HERE TO COMPLETE THIS APPLICATION VIA RSIGN

[PDF] DOWNLOAD (5305) CUSTODIAL AGREEMENT

Submit Your Forms: All forms can be mailed or faxed to any of our locations or emailed to NewAccounts@QuestIRA.com.

Income Limits:

Tax Filing Status2017 Tax Year2018 Tax Year
Single or Head of Household$118,000 – $133,000 $120,000 – $135,000
Married Filing Jointly $186,000 – $196,000 $189,000 – $199,000
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.