Contributions to a Roth IRA are not deductible from your current taxable income,
but if the funds are distributed in a qualified distribution, they are nontaxable.
This means the earnings on the Roth IRA are generally nontaxable also. Roth IRA
account funds may be invested in bank deposit accounts or in non deposit products
as directed by the accountholder.
If you are under 50 years of age, you may contribute $5,500 or 100% of your earned
income per year, whichever is less. If you are age 50 or older, your contribution
amount increases to $6,500 or 100% of your earned income per year, whichever is
less. You may contribute to a traditional IRA, a Roth IRA, or a combination of the
two. But contributions to a Roth IRA must be aggregated with traditional IRA contributions
to comply with the annual contribution limit.
If you have little or no earned income, are married, and file a joint federal income
tax return, you may contribute using the spousal rules. If you and your spouse's
combined income is at least $11,000 and you are both under 50 years old, you may
each contribute up to $5,500. If you and your spouse's combined income is at least
$13,000 and you are both 50 or older, you may each contribute up to $6,500 to a
There is no maximum age for making a Roth IRA contribution; however, contributions
must still be based on earned income. You are not required to take distributions
from your Roth IRA during your lifetime.
If you are single, you are eligible for the full Roth IRA contribution if your modified
adjusted gross income (MAGI) is $112,000 or less for the year. In 2013, if your
MAGI is between $112,000 and $127,000, you can contribute to a Roth IRA, but not
the full $5,500 ($6,500 if age 50 or older). If your MAGI is over $127,000, you
are not allowed to make a contribution to a Roth IRA for the year.
Married Individuals, Filing Jointly
If you are married and filing a joint federal income tax return, you are eligible
for the full Roth IRA contribution if your joint MAGI is under $178,000 for the
year. If your joint MAGI is between $178,000 and $188,000 in 2013, you are eligible
to contribute to a Roth IRA, but not the full $5,500 ($6,500 if age 50 or older).
If your joint MAGI is at least $188,000, you are not allowed to make a Roth IRA
contribution for the year.
A withdrawal from a Roth IRA that is a qualified distribution is not subject to
federal income tax and is not subject to the IRS 10% early distribution penalty
. A withdrawal is a qualified distribution if it is paid:
- To you after you reach age 59½.
- To you when you are disabled.
- To you for a qualifying first-time home purchase.
- To your beneficiary after your death.
And is not paid:
During the five taxable year period that begins with the first taxable year that
you make a Roth IRA contribution.
If the Roth IRA is a rollover from an IRA other than a Roth IRA, during the five
taxable year period that begins with the taxable year that the rollover contribution
The IRS early distribution penalty does not apply to the conversion of a traditional
IRA to a Roth IRA.
Consult your tax adviser regarding eligibility, contributions, and distributions.
Withdrawals may be subject to early withdrawal penalties per investment account
contract. Fees may reduce earnings.
WesBanco Bank, Inc. is a Member FDIC. Individual Retirement Accounts may be invested
in insured deposits, or non-deposit investment products. Non-deposit investment
products are not insured by the FDIC, are not deposits or other obligations of,
or guaranteed by any bank or any affiliate, and are subject to investment risks
including the possible loss of the principal amount invested.
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