Firstrade Roth IRA Account

Secure Your Future Today: Open a Roth IRA with Firstrade and Watch Your Savings Grow Tax-Free!
Open a Roth IRA

What is a Roth IRA

A Roth IRA is an individual retirement account that you fund with money on which you've already paid income taxes. The money in your Roth IRA grows tax-free and you can withdraw your contributions tax-free and penalty-free once you reach age 59½, or earlier, provided you meet certain conditions.

Advantages of a Roth IRA

Tax-Free Growth & Withdrawals
Your investments grow tax-free over time and once it's time to retire, qualified withdrawals are completely tax-free.
Diverse Investment Options
Roth IRAs offer flexibility in investment choices, including stocks, bonds, mutual funds, ETFs, and more.
No Required Minimum Distributions (RMDs)
Unlike traditional IRAs, Roth IRAs don't force you to take money out as you age. Your money can keep growing tax-free for as long as you want, and you can withdraw it whenever you choose.
Flexibility in Contributions & Withdrawals
Contribute after tax dollars to retirement at any age (providing you meet income requirements) and withdraw your contributions (not earnings) at any time without taxes or penalties.

Why choose a Firstrade Roth IRA?

  • $0 commission fees on online trades
  • Earnings and withdrawals can potentially be tax-free
  • Choose from a wide range of investment options
  • $0 commission fees on online trades

Roth IRA Rules

Eligibility Requirements
To contribute to a Roth IRA, your Modified Adjusted Gross Income (MAGI) must fall within the following income ranges:

Single Filers
  • Less than $150,000: Full contribution ($7,000 or $8,000 if age 50+)
  • $150,000 - $164,999: Partial contribution allowed
  • $165,000 or more: Not eligible (For high income earners, you may use the backdoor Roth IRA strategy. Learn more)

Married Filing Jointly
  • Less than $236,000: Full contribution ($7,000 or $8,000 if age 50+)
  • $236,000 - $245,999: Partial contribution allowed
  • $246,000 or more: Not eligible. (For high income earners, you may use the backdoor Roth IRA strategy. Learn more)
Contribution Limits Per Year
If you are qualified for full contribution, the contribution limits are:

Contribution Limits:
  • Tax Year 2024: $7,000 ($8,000 if age 50+)
  • Tax Year 2025: $7,000 ($8,000 if age 50+)
Withdrawals
Contributions can be withdrawn at any time with no taxes or penalties.

Gains can be withdrawn tax- and penalty-free if:
  • You are age 59 1/2 or older, and
  • The account has been open for at least 5 years.

Roth conversions (converting from a Traditional IRA to a Roth IRA) are permitted at any income level. No required minimum distributions (RMDs) during your lifetime.
* Subject to certain restrictions. Please consult with your tax advisor.
**If your income falls in the "partial contribution" range, the amount you can contribute is reduced according to IRS guidelines.

Interested in Learning More About Retirement Accounts?

Learn about the basics of retirement, from types of accounts available to taking minimum required distributions (MRDs).

Step-by-step guide on how to rollover an old 401(k) to Firstrade.

Dive deeper into how these two accounts differ from each other and take control of your retirement.

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