This table will help you take a closer look at the key features and benefits of Roth IRAs. Please note that the information provided in the table is for the 2015 tax year.
Your ability to contribute to a Roth IRA depends on your income level. (See Contributions for more information.)
Earnings grow tax-free. (Taxes and possible federal tax penalties apply on nonqualified distributions.)
All qualified distributions are tax-free. Nonqualified distributions may be subject to taxes and possible federal tax penalties.
Nonqualified distributions are considered to be taken in the following order:
from contributions to the Roth until used up
from conversions to the Roth (on a first-in, first-out basis when there is more than one conversion), each depleted in the following order:
There are no required minimum distributions during your lifetime.
Distributions due to death:
Withdrawals of contributions are always tax-free and free of federal tax penalty.
If you withdraw money that has been converted, the taxable portion of converted amount is treated as income. Possible federal tax penalties apply if converted amounts are withdrawn before 5 years since latest conversion.
Withdrawals of earnings are tax-free after the initial contribution or latest conversion, if invested for 5 taxable years and one of the following is true. You:
Earnings are also withdrawn free of federal tax penalty if the money is used for:
If you want to reconvert to a Roth IRA, you must wait until the beginning of the new tax year following the tax year that you converted or a minimum of 30 days after the recharacterization is completed, whichever is later.
Please discuss your conversion situation and options with your tax advisor or financial professional.
You can learn more about Roth IRAs in IRS Publication 590. We also encourage you to discuss your financial goals, eligibility and individual tax situation with your tax advisor or financial professional.
Investments are not FDIC-insured, nor are they deposits of or guaranteed by a bank or any other entity, so they may lose value.
Investors should carefully consider investment objectives, risks, charges and expenses. This and other important information is contained in the fund prospectuses and summary prospectuses , which can be obtained from a financial professional and should be read carefully before investing.