Roth IRA FAQs What is a Roth IRA? A Roth IRA is a type of individual retirement account that grows money in a tax-deferred manner. Can I roll over funds from Roth IRA to other retirement accounts? Roth IRA funds can be rolled over into other financial instruments, such as trusts, or the balance in a Roth IRA account can be increased using funds from other instruments, such as company-sponsored retirement plans. What are the advantages and disadvantages of Roth IRAs? Among the advantages of Roth IRAs are tax-free withdrawals and the absence of mandatory required minimum distributions after a certain age. The disadvantages of Roth IRAs include income restrictions and the decline in present income due to tax liabilities resulting from contributions to such accounts. Am I eligible for a Roth IRA? To be eligible to open a Roth IRA account in 2024, you need to have earned Modified Adjusted Gross Income (MAGI) of $161,000 or below, if you are a single filer and $240,000 or below, if you are married and filing jointly. In 2025, single filers must have a MAGI of $165,000 or below while those married and filing jointly must have $246,000 or below. How do you open a Roth IRA? To open a Roth IRA account, you need to visit a bank or a brokerage with the necessary documentation, such as proof of income and identification. About the Author True Tamplin, BSc, CEPF® Facebook Linkedin Instagram Twitter Youtube True Tamplin is a published author, public speaker, CEO of UpDigital, and founder of Finance Strategists. True is a Certified Educator in Personal Finance (CEPF®), author of The Handy Financial Ratios Guide, a member of the Society for Advancing Business Editing and Writing, contributes to his financial education site, Finance Strategists, and has spoken to various financial communities such as the CFA Institute, as well as university students like his Alma mater, Biola University, where he received a bachelor of science in business and data analytics. To learn more about True, visit his personal website or view his author profiles on Amazon, Nasdaq and Forbes.