Жеке зейнетақы шоты: Roth IRA туралы толық мәлімет

Individual retirement account
A Roth IRA is an individual retirement account (IRA) under United States law that is generally not taxed upon distribution, provided certain conditions are met. The principal difference between Roth IRAs and most other tax advantaged retirement plans is that rather than granting a tax reduction for contributions to the retirement plan, qualified withdrawals from the Roth IRA plan are tax free, and growth in the account is tax free. The Roth IRA was introduced as part of the Taxpayer Relief Act of 1997 and is named for Senator William Roth.

Originally called an "IRA Plus", the idea was proposed by Senator Bob Packwood of Oregon and Senator William Roth of Delaware in 1989. The Packwood–Roth plan would have allowed individuals to invest up to $2,000 in an account with no immediate tax deductions, and the earnings could later be withdrawn tax free at retirement. In 1997, Roth wanted to restore the traditional IRA which had been repealed in 1986, and the upfront tax deduction that goes with it. Under congressional budget rules, which worked within a 10 year window, the revenue cost of giving that tax break to everyone was too high, so his staff limited deductible IRAs to people with very low income, and made Roth IRAs (initially with income limitations) available to others. This slid the revenue cost outside the 10 year window and got the legislation out from under the budget rules. Economists have warned about exploding future revenue losses associated with Roth IRAs. With these accounts, the government is "bringing in more now, but giving up much more in the future," said economist and Forbes contributor Leonard Burman. In a study for The Tax Policy Center, Burman calculated that from 2014 to 2046, the Treasury would lose a total of $14 billion as a result of IRA related provisions in the 2006 tax law. The losses stem from both Roth conversions and the ability to make nondeductible IRA contributions and then immediately convert them to Roths. Earnings may be withdrawn tax and penalty free after 5 years if the condition of age 59½ (or other qualifying condition) is also met. Rollover, converted (before age 59½) contributions held in a Roth IRA may be withdrawn tax and penalty free after 5 years. Distributions from a Roth IRA do not increase Adjusted Gross Income. This differs from a traditional IRA, where all withdrawals are taxed as ordinary income, and a penalty applies for withdrawals before age 59½. Even capital gains on stocks or other securities held in a regular taxable account, so long as they are held for at least a year, are generally treated more advantageously than traditional IRA withdrawals, being taxed not as Ordinary Income, but at the lower Long Term Capital Gain rate. This potentially higher tax rate for withdrawals of capital gains from a traditional IRA is a quid pro quo for the deduction taken against ordinary income when putting money into the IRA. Up to a lifetime maximum $10,000 in earnings, withdrawals are considered qualified (tax free) if the money is used to acquire a principal residence for the Roth IRA owner. This principal residence must be acquired by the Roth IRA owner, their spouse, or their lineal ancestors and descendants. The owner or qualified relative who receives such a distribution must not have owned a home in the previous 24 months. Contributions may be made to a Roth IRA even if the owner participates in a qualified retirement plan such as a 401(k). (Contributions may be made to a traditional IRA in this circumstance, but they may not be tax deductible.) If the Roth IRA owner expects that the tax rate applicable to withdrawals from a traditional IRA in retirement will be higher than the tax rate applicable to the funds earned to make the Roth IRA contributions before retirement, then there may be a tax advantage to making contributions to a Roth IRA over a traditional IRA or similar vehicle while working. There is no current tax deduction, but money going into the Roth IRA is taxed at the taxpayer's current marginal tax rate, and will not be taxed at the expected higher future effective tax rate when it comes out of the Roth IRA. There is always risk, however, that retirement savings will be less than anticipated, which would produce a lower tax rate for distributions in retirement. The Roth IRA does not require distributions based on age. All other tax deferred retirement plans, including the related Roth 401(k), require withdrawals to begin by April 1 of the calendar year after the owner reaches the RMD (Required minimum distribution) age of 72 (prior to the year 2020, the RMD age was 70½). If the account holder does not need the money and wants to leave it to their heirs, a Roth can be an effective way to accumulate tax free income. Beneficiaries who inherit Roth IRAs are subject to special minimum distribution rules. Roth IRAs have a higher "effective" contribution limit than traditional IRAs, since the nominal contribution limit is the same for both traditional and Roth IRAs, but the post tax contribution in a Roth IRA is equivalent to a larger pre tax contribution in a traditional IRA that will be taxed upon withdrawal. For example, a contribution of the 2008 limit of $5,000 to a Roth IRA would have been equivalent to a traditional IRA contribution of $6667 (assuming a 25% tax rate at both contribution and withdrawal). In 2008, one could not contribute $6667 to a traditional IRA due to the contribution limit, so the post tax Roth contribution may be larger. On estates large enough to be subject to estate taxes, a Roth IRA can reduce estate taxes since tax dollars have already been subtracted. A traditional IRA is valued at the pre tax level for estate tax purposes. Most employer sponsored retirement plans tend to be pre tax dollars and are similar, in that respect, to a traditional IRA, so if additional retirement savings are made beyond an employer sponsored plan, a Roth IRA can diversify tax risk. Unlike distributions from a regular IRA, qualified Roth distributions do not affect the calculation of taxable social security benefits. Roth Conversions not only convert taxable IRA income to tax free income, but if the IRA holds alternative assets such as REITs (Real Estate Investment Trusts), Leasing Programs, Oil and Gas Drilling Partnerships and Royalty Partnerships, a Fair Market Valuation (FMV) or "Substantially Discounted Roth Conversion" may provide reductions in the conversion income tax by up to 75%, possibly more, depending on assets and the Fair Market Valuation. Roth Conversions using the FMV or "Substantially Discounted Roth Conversion" may reduce the estate tax attributed to IRA's on large estates by up to 75%, or more, depending on the assets held at the time of conversion. Roth Conversions main benefit is in the conversion of taxable IRA income to tax free Roth income, however Roth Conversion income does not add to MAGI (Modified Adjusted Gross Income) hence reducing the taxpayers Medicare Part B Premiums (another tax). FMV or "Substantially Discounted Roth Conversion" may allow the taxpayer to reduce RMDs by up to 75%.

Funds that reside in a Roth IRA cannot be used as collateral for a loan per current IRS rules and therefore cannot be used for financial leveraging or as a cash management tool for investment purposes. Contributions to a Roth IRA are not tax deductible. For Canadians with U. S. Roth IRAs: A 2008 rule provides that Roth IRAs (as defined in section 408A of the U. S. Internal Revenue Code) and similar plans are considered to be pensions. Accordingly, distributions from a Roth IRA (as well as other similar plans) to a resident of Canada will generally be exempt from Canadian tax to the extent that they would have been exempt from U. S. tax if paid to a resident of the U. S. Additionally, a resident of Canada may elect to defer any taxation in Canada with respect to income accrued in a Roth IRA but not distributed by the Roth IRA, until and to the extent that a distribution is made from the Roth IRA or any plan substituted therefor. The effect of these rules is that, in most cases, no portion of the Roth IRA will be subject to taxation in Canada. However, where an individual makes a contribution to a Roth IRA while they are a resident of Canada (other than rollover contributions from another Roth IRA), the Roth IRA will lose its status as a "pension" for purposes of the Treaty with respect to the accretions from the time such contribution is made. Income accretions from such time will be subject to tax in Canada in the year of accrual. In effect, the Roth IRA will be bifurcated into a "frozen" pension that will continue to enjoy the benefit of the exemption for pensions and a non pension (essentially a savings account) that will not.

Congress has limited who can contribute to a Roth IRA based upon income. A taxpayer can contribute the maximum amount listed at the top of the page only if their Modified Adjusted Gross Income (MAGI) is below a certain level (the bottom of the range shown below). Otherwise, a phase out of allowed contributions runs proportionally throughout the MAGI ranges shown below. Once MAGI hits the top of the range, no contribution is allowed at all; however, a minimum of $200 may be contributed as long as MAGI is below the top of the range. Excess Roth IRA contributions may be recharacterized into Traditional IRA contributions as long as the combined contributions do not exceed that tax year's limit. The Roth IRA MAGI phase out ranges for 2021 are: Generally, the contribution cannot exceed your earned income for the year in question. The one exception is for a "spousal IRA" where a contribution can be made for a spouse with little or no earned income provided the other spouse has sufficient earned income and the spouses file a joint tax return. The Roth annual maximum input increased to $7,000 as of 2024, is a $1,000 increase from prior years and $500 increase from 2023. It is highly recommended that an investor to max out the annual input amount for maximum return; however, penalties exist for going above the maximum allowable investment amount.

The government allows people to convert Traditional IRA funds (and some other untaxed IRA funds) to Roth IRA funds by paying income tax on any account balance being converted that has not already been taxed (e. g., the Traditional IRA balance minus any non deductible contributions). Prior to 2010, two circumstances prohibited conversions: Modified Adjusted Gross Income exceeding $100,000 or the participant's tax filing status is Married Filing Separately. These limitations were removed as part of the Tax Increase Prevention and Reconciliation Act of 2005.

Regardless of income but subject to contribution limits, contributions can be made to a Traditional IRA and then converted to a Roth IRA. This allows for "backdoor" contributions where individuals are able to make Roth IRA contributions even if their income is above the limits. One major caveat to the entire "backdoor" Roth IRA contribution process, however, is that it only works for people who do not have any pre tax contributed money in IRA accounts at the time of the "backdoor" conversion to Roth; conversions made when other IRA money exists are subject to pro rata calculations and may lead to tax liabilities on the part of the converter.

Returns of regular contributions from Roth IRA(s) are always withdrawn tax and penalty free. any interest earned in the IRA will be subject to tax—a substantial penalty which forfeits the primary tax benefits of the Roth IRA.