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"&amp;lt;p&amp;gt;Roth accounts offer one of the only ways you can grow money tax-FREE! At the link above you can learn more about how a Roth IRA is different from a traditional IRA.&amp;lt;/p&amp;gt;&amp;lt;p&amp;gt;The Roth retirement account is designed to help individuals save for retirement and eliminate any taxes owed when funds are withdrawn.\u00A0&amp;lt;/p&amp;gt;&amp;lt;p&amp;gt;The only downside to a Roth is that you can&amp;amp;#39;t contribute more. There is a maximum allowable contribution amount - and unfortunately, if your income is too high you can&amp;amp;#39;t make a Roth IRA contribution - although you may be able to contribute to a Roth Account through your 401(k) plan - and at any income level you can convert a traditional IRA to a Roth.&amp;lt;/p&amp;gt;&amp;lt;p&amp;gt;Wondering how much you can contribute to a Roth IRA or if you make too much to contribute?&amp;lt;/p&amp;gt;&amp;lt;p&amp;gt;You have to have earned income to contribute (if married as long as you have enough earned income you can make a spousal Roth contribution even if your spouse has no earned income.)&amp;lt;/p&amp;gt;&amp;lt;p&amp;gt;And if you have too much earned income, you can&amp;amp;#39;t contribute to a Roth IRA - although you may still be able to contribute to a Roth 401(k) or use a Roth conversion.&amp;lt;/p&amp;gt;&amp;lt;p&amp;gt;The rules and limits change a bit each year. At the link above you&amp;amp;#39;ll find an article that covers all the latest Roth IRA contribution limits and earned income rules.&amp;lt;/p&amp;gt;&amp;lt;p&amp;gt;There&amp;amp;#39;s a mass of messy information out there about Roth IRA withdrawals. The bottom line is &amp;lt;em&amp;gt;most of the time&amp;lt;/em&amp;gt; your Roth IRA withdrawal will be tax-free.&amp;lt;/p&amp;gt;&amp;lt;p&amp;gt;The exception to tax-free withdrawals: income earned on investments inside the Roth may be taxable if you take a non-qualified withdrawal. And amounts you converted to a Roth from a traditional retirement plan may be subject to taxes if you take the money out too soon after conversion. Find the specifics at the link above.&amp;lt;/p&amp;gt;&amp;lt;p&amp;gt;Also note - unlike traditional IRAs, regardless of age, you are not required to take distributions from a Roth. You can leave the account to grow and pass it along to your heirs tax-free.&amp;lt;/p&amp;gt;&amp;lt;p&amp;gt;If you decide to take a distribution before age 59 1/2, or before you have had the Roth at least five years, read the withdrawal rules carefully to see if you&amp;amp;#39;ll owe tax on any portion of the withdrawal. If you are disabled\u00A0or paying for first-time home-buyer expenses you&amp;amp;#39;ll likely qualify for an exception to any early withdrawal penalty taxes.&amp;lt;/p&amp;gt;&amp;lt;p&amp;gt;With a Roth conversion, you take a withdrawal from a traditional IRA or 401(k) and convert it to a Roth. You&amp;amp;#39;ll pay ordinary income taxes on the withdrawal amount but not early withdrawal penalty taxes.&amp;lt;/p&amp;gt;&amp;lt;p&amp;gt;A Roth conversion makes sense for many folks who want their money to grow tax-free. At the link above you&amp;amp;#39;ll learn the five questions to ask to see if a conversion might make sense for you.&amp;lt;/p&amp;gt;&amp;lt;p&amp;gt;The five questions will be a useful resource if you are considering evaluating the benefits of a Roth conversion on your own. If you have a financial advisor or tax expert to lean on, consider having a second set of eyes double check your calculations.&amp;lt;/p&amp;gt;&amp;lt;p&amp;gt;More and more employers are offering the option to contribute to a Designated Roth account through their employer-sponsored 401(k) plan.&amp;lt;/p&amp;gt;&amp;lt;p&amp;gt;The great thing about this is you can contribute an amount up to the 401(k) salary deferral limit - which is a much larger amount than the Roth IRA maximum contribution limit.\u00A0&amp;lt;/p&amp;gt;&amp;lt;p&amp;gt;Encourage your employer to offer a Roth option in the 401(k) plan. You can even contribute half to the traditional deductible 401(k) and half to the Roth.&amp;lt;/p&amp;gt;&amp;lt;p&amp;gt;At the link above you can read up on the differences between Roth 401(k) accounts, traditional 401(k) accounts and Roth IRAs.&amp;lt;/p&amp;gt;"^^<http://www.w3.org/2001/XMLSchema#string>
<https://www.thebalance.com/faqs-about-roth-ira-2388714>