Roth IRA Contribution Amounts and Deadlines
- You can contribute to a Roth IRA if you (or your spouse) have earned income* within the appropriate eligibility range.
if Under Age 50
if 50 or Over
Contributions Accepted Between
|2016||$5,500||$6,500||Jan. 1, 2016 - April 18, 2017|
|2017||$5,500||$6,500||Jan. 1, 2017 - April 17, 2018|
- If you make a contribution for the previous tax year between January 1 – April 15, attach a note with your check instructing us to post it as a “Prior Year Contribution.” A prior year contribution must be postmarked by April 15th.
- Automatic Investment Plan contributions will post as current year contributions.
- The minimum initial investment for all Sit IRA accounts is $2,000 (per fund). The minimum subsequent investment is $100.
* Earned income includes wages, salaries, tips, professional fees, bonuses, commissions, self-employment income, nontaxable combat pay, military differential pay, taxable alimony and separate maintenance payments.
Roth IRA Contribution Eligibility
The amount you are permitted to contribute to a Roth IRA depends on your tax filing status and annual income.**
Caution: If your annual income** is too high, you may not be able to contribute to a Roth IRA in a given tax year. Please see the chart below for restrictions.
Eligible Contribution Income Range
Full Contribution Permitted
Partial Contribution Permitted
No Contribution Permitted
|Single or Head of Household||2016||Less than $117,000||$117,000 - $132,000||More than $132,000|
|2017||Less than $118,000||$118,000 - $133,000||More than $133,000|
|2016||Less than $184,000||$184,000 - $194,000||More than $194,000|
|2017||Less than $186,000||$186,000 - $196,000||More than $196,000|
** Annual income is your Modified Adjusted Gross Income, which is your Adjusted Gross Income before certain deductions or adjustments are made. For more information, see IRS Publication 590-A at www.irs.gov.
Roth IRA Withdrawals
You can withdraw money from your Roth IRA at any time. Whether or not your distribution is taxable depends on a few factors. See our distribution section for details. You are not required to withdraw money unless you inherited your Roth IRA.
Roth IRA Custodial Fee
- The annual custodial fee is waived if your account balance is $10,000 or more.
- The annual custodial fee for a Sit Roth IRA is $15 if your account balance is less than $10,000. We will notify you in November and you may pay the fee then or, if unpaid, we will deduct the fee in mid-December for your convenience.
- If your account balance is less than $10,000 when you close your IRA, the fee will be deducted from your check.
- Your Roth IRA contributions are reported on Form 5498 (“IRA Contribution Information”), which is mailed to you in May.
- Your Roth IRA redemptions are reported on Form 1099-R (“Distributions from IRAs”), which is mailed to you in January.
A tax credit reduces the amount of tax owed. With the IRS Saver’s Credit, you may be able to take a tax credit of up to $1,000 ($2,000 if married filing jointly) for your Roth IRA contribution.
To claim the IRS Saver’s Credit, you must be 18 or older, not be a full-time student, not be claimed as a dependent on someone else’s tax return, and your income must not exceed the appropriate thresholds referenced below.
Maximum Income Allowed Before the Saver’s Credit is No Longer Permitted
|Tax Year||Single||Head of Household||Married Filing Jointly|
For more information, see IRS Form 8880, available at www.irs.gov.