To start with, Roth IRA is a nontaxable retirement plan under the US laws that offers a good . Roth IRA is specifically more appealing for individuals whose tax would increase after their retirement as this plan provides withdrawal of the deposited money after retirement albeit without any added tax. So you can rest on that coveted arm–chair of yours and read that long ignored novel after retirement without worrying about skyhigh taxes.

The maximum amount that can be contributed per year is fixed as per your Modified Adjusted Gross Income MAGI. So if you are earning way more than the average household earns, you will not be able to contribute to Roth IRA but you may still be able to contribute by splitting up into Traditional IRA and other schemes.

The fixed MAGI for U.S. citizens are as follows –

• Single contributors should earn between 116,000 131,000
• Joint contributors should earn between 183,00 193,000
• Married couple contributing separately if they lived together during a time of this year should earn 10,000

The maximum amount that an individual can contribute for the year 2015 was mentioned as 5,500 for people below 50 years of age. Senior citizens have the liberty to contribute a bit more than others, 6,500.

The beauty of Roth IRA is that anybody can file for Roth IRA and expect a proper return on investment. Whether you are a celebrity, kid, a teenager doing a number of parttime jobs for ‘pocket money a part of which can be saved for future!, a fullfledged professional or a retired person savoring your longneeded rest. The return on investment will make you more or less happy as you wont have to pay those extra bucks as taxes. And if you earn less than the required amount, the maximum amount for you to contribute would be your salary per year. With Roth IRA you can withdraw your money anytime you want and without additional taxes.