Roth IRA


A Roth IRA (individual retirement arrangement) is an account that helps you save after-tax dollars you can withdraw without taxes after age 59 ½1. Many investors save in an IRA in addition to their employer-sponsored plan. A Commerce Financial Advisor can help you compare a traditional IRA to a Roth IRA to determine which approach is best suited to your situation.


  • Contributions can be withdrawn at any age without taxes or penalties.

  • Earnings you withdraw are tax-free after age 59½ if the account has been established for a minimum of five years.

  • Contributions can be made at any age if you have earned income.

  • No required minimum distributions during your lifetime

  • Beneficiaries may pay no income tax on proceeds.

  • A wide range of investment options is available.



  • Contributions are made with after-tax dollars and are not tax-deductible.

  • Premature withdrawals in excess of contributions are fully taxable and subject to an early withdrawal penalty.

Tax Considerations*

  • Contributions can only be made with after-tax dollars.

Type of Investments

  • Stocks, bonds, mutual funds, exchange-traded funds (ETFs), U.S. Treasuries, Brokered CDs, unit investment trusts (UITs), and annuities



  • Anyone who has earned income equal to or greater than their IRA contribution amount

  • If you contribute to an employer-sponsored plan such as a 401(k), you are still eligible to contribute to a Roth IRA if you meet the Income Limits below.

  • If you have no earned income but your spouse earns enough income to cover your contribution as well as his or her own, you can contribute to a Roth IRA.

Annual Contribution Limits

  • $6,500 under age 50

  • $1,000 additional catch-up contribution if age 50 and over

  • You may contribute simultaneously to a Traditional IRA and a Roth IRA (subject to eligibility) if the total contributed to all (Traditional and Roth IRAs) does not exceed described limits.

Income Limits

  • Your Modified Adjusted Gross Income (MAGI) cannot exceed:

      • $153,000 for single filers

      • $228,000 for joint filers

  • Contributions are phased out for single filers with a MAGI between $138,000 and $153,000, and for joint filers with a MAGI between $218,000 and $228,000.1


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* Commerce Financial Advisors does not provide tax advice or legal advice to customers. Consult a tax specialist regarding tax implications related to any product and specific financial situations..



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Securities and Advisory services provided through Commerce Brokerage Services, Inc., member FINRA, SIPC, and a registered investment advisor. Insurance products are offered through Commerce Insurance Services, Inc. Both entities are subsidiaries of Commerce Bank.

Investments in securities and insurance products are Not FDIC insured; Not Bank-Guaranteed and May Lose Value.

This site is not intended for use by, or to provide any information to, investors in any state where Commerce Brokerage Services, Inc. is not registered or in any jurisdiction outside the United States of America where such use would be prohibited or otherwise regulated. Nothing on this web site shall be considered a solicitation to buy or an offer to sell a security to any person in any jurisdiction where such offer, solicitation, purchase or sale would be unlawful under the securities laws of such jurisdiction.