<div id="Content_container"><!--CSS--><p><img alt="" src="//www.emeraldhost.net/files/newsletters/Roth_IRA.jpg" style="width:100%" /></p> <h1>What Is a Roth IRA?</h1> <p class="opening">Roth IRAs are tax-favored financial vehicles that enable investors to save money for retirement. They differ from traditional IRAs in that taxpayers cannot deduct contributions made to a Roth. However, qualified Roth IRA distributions in retirement are free of federal income tax and aren&rsquo;t included in a taxpayer&rsquo;s gross income. That can be advantageous, especially if the account owner is in a higher tax bracket in retirement or taxes are higher in the future.</p> <p>A Roth IRA is subject to the same contribution limits as a traditional IRA, the maximum <em>combined</em> annual contribution an individual can make to traditional and Roth IRAs is $7,500 in 2026 (up from $7,000 in 2025). Special &ldquo;catch-up&rdquo; contributions enable those nearing retirement (age 50 and older) to save at an accelerated rate by contributing $1,100 in 2026 (up from $1,000 in 2025) more than the regular annual limits.</p> <p>There is no maximum age at which Roth IRA owners can contribute to a Roth as long as they have earned income, and they don&rsquo;t have to begin taking mandatory distributions due to age, as they do with traditional IRAs; however, beneficiaries of Roth IRAs must take mandatory distributions.</p> <p>Roth IRA withdrawals of contributions can be made at any time and for any reason. Withdrawals of contributions are tax-free and not subject to the 10% federal tax penalty for early withdrawals. In order to make a qualified tax-free and penalty-free distribution of earnings, the account must meet the five-year holding requirement and the account holder must be age 59&frac12; or older. Otherwise, these withdrawals of earnings are subject to ordinary income tax and the 10% federal tax penalty (unless an exception applies).</p> <p>Keep in mind that even though qualified Roth IRA distributions are free of federal income tax, they may be subject to state and/or local income taxes. Eligibility to make annual contributions to a Roth IRA phases out for taxpayers with higher incomes.</p> <p>If you&rsquo;re looking for a retirement savings vehicle with some distinct tax advantages, the Roth IRA could be appropriate for you.</p> <p class="source"><span style="font-size:12px">The information in this newsletter is not intended as tax, legal, investment, or retirement advice or recommendations, and it may not be relied on for the &shy;purpose of &shy;avoiding any &shy;federal tax penalties. </span><span data-darkreader-inline-bgcolor="" data-darkreader-inline-color="" style="--darkreader-inline-bgcolor:var(--darkreader-background-ffffff, #000000); --darkreader-inline-color:var(--darkreader-text-222222, #fdf7ee); background-color:#ffffff; color:#222222; font-family:Arial,Verdana,sans-serif; font-size:12px; text-align:justify">You are encouraged to seek guidance from an independent tax or legal professional.&nbsp;</span><span style="font-size:12px">The content is derived from sources believed to be accurate. Neither the information presented nor any opinion expressed constitutes a solicitation for the &shy;purchase or sale of any security. This material was written and prepared by Broadridge Advisor Solutions. &copy; 2026 Broadridge Financial Solutions, Inc.</span></p></div>