Roth IRA is the latest version of IRA. This kind of IRA is considered to be the best type of IRA, if it is compared to the previous IRA. The reason why roth ira is recommended more than Traditional IRA is because this IRA has more advantages and benefits. However, when people are thinking about applying for this kind of IRA, there are some important rules that people have to know before they decide to apply for it. The first important rule is the age rule. This rule is used to limit the age of people who are about to apply for this kind of IRA. People have to be at least 18 years old when applying for this IRA, because they are considered to be mature enough to deal with this kind of service. What about if someone under 18 years old is willing to apply? Well, If this is the case, then he or she can ask the parents to open an IRA account for them with the parents’ names, so that they can contribute in the future when his or her age is ready.
The second important rule that people have to know before applying for this kind of IRA is that limitation of income. Not all of the people can apply for this kind of retirement service. They have to make sure first that their salary cover the income limitation given. There will be two income limitations given to people who are about to apply for it; they are for single and couple. If the applicant is single, then the income limitation that they have to cover is about $122,000 per year. Meanwhile, if the applicants are couple, then the income limitation that they have to cover is about $179.000 per year.
