1. Potentially tax free withdrawals
2. No mandatory distributions at the age of 70 ½
3. Contributions can be taken out at any point without paying a penalty
4. There is not an age limit on contributions
5. Catch up provisions for individuals over the age of 50

The tax treatment on withdrawals from a Roth IRA is dependent upon whether the withdrawals are qualified or non-qualified. For distributions to be considered qualified, thereby receiving the tax-free benefit, they must meet the following criteria following at least 5 years after opening their first Roth IRA account:

Individuals who meet the qualification requirements may contribute 100% of their eligible annual income into a Roth IRA, up to the annual maximum amount. The annual maximum for 2009 is $5,000 per qualified individual investor. Individuals who are age 50 and older can increase their annual contribution by the catch up amount, which for 2009 is $1,000 per annum. In some cases, individuals may make contributions into a spousal Roth IRA, even if the spouse does not have earned income for the respective tax year.

Roth IRAs can be established with financial institutions which have met the IRS requirements. Banks, brokerage houses, credit unions and savings and loans are just a few examples of financial institutions in which a Roth IRA can be established.

Individual investors with earned income during the respective tax year and who do not exceed the annual income restrictions (modified adjusted gross income) may contribute up to the maximum annual amount into a Roth IRA account.

Eligible investors can make annual contributions into their Roth IRA accounts. Interested investors need to ensure that their annual income does not exceed the maximum allotted amount; these amounts change on an annual basis. Contributions into a Roth IRA are not tax-deductible. Roth IRA account holders can make qualified withdrawals on a tax free basis; after the age of 59 ½ or at least 5 years after the account was opened, in the event of a disability or for a qualified first home purchase (up to $10,000).

A Roth IRA is an investment account which allows qualified investors to save dollars for their financial future. Individuals must have received qualified income during the respective tax year to fund a Roth IRA account, and their income must fall under the cap established by the IRS; individual filing or joint filing status. Contributions into a Roth IRA are not tax deductible. Qualified distributions from a Roth IRA account are considered tax free.

Individuals who meet the qualification requirements may contribute 100% of their eligible annual income into a Roth IRA, up to the annual maximum amount. The annual maximum for 2009 is $5,000 per qualified individual investor. Individuals who are age 50 and older can increase their annual contribution by the catch up amount, which for 2009 is $1,000 per annum. In some cases, individuals may make contributions into a spousal Roth IRA, even if the spouse does not have earned income for the respective tax year.