Eligibility of Roth IRA’s
All IRAs require certain eligibility from the Internal Revenue Service. The roth iradiffers from other IRAs because of its tax structure. Contributions to a Roth IRA are made from income that is considered earned income, meaning that it has already been taxed. Because the contributions have already been taxed, the use of the funds is more flexible than a traditional IRA.
For both Roth and traditional IRAs, the Internal Revenue Service has established limits on how much can be contributed to the account. The contribution limits are re-evaluated and often adjusted to reflect economic conditions. People age 50 and above have a higher contribution limit than people age 49 and younger.
