Roth IRAs

A Putnam Roth IRA is a smart way for investors to help finance their retirement, with tax-free distribution of earnings for individuals age 59½ or older, provided their accounts have been open for at least five years. Roth IRAs offer a myriad of additional benefits, including tax advantages, estate planning opportunities, and portability.

Investors who could benefit

  • Individuals saving for retirement with AGIs below $131,999 (single) or $193,999 (married, filing jointly).
  • Higher-income retirement investors for whom the Traditional IRA does not offer tax-deductible contributions.
  • Any retirement investor who expects to be in a higher tax bracket post-retirement.
  • Investors who are interested in leaving a financial legacy to their heirs.

Take advantage: Putnam Roth IRA

  • Tax-free growth (for qualifying withdrawals).
  • Ability to continue making contributions after age 70½.
  • No requirement to begin withdrawals after age 70½ — you have the opportunity to leave a financial legacy to your children or grandchildren.
  • All withdrawals made after age 59½ are free from federal income taxes, as long as the account has been open for at least five years.
  • Roth IRAs offer investors the chance to diversify the tax treatment of their investments by providing a tax-free source of income in retirement.

Resources

Use Type
Beginning in 2010 with the elimination of its income cap for conversions, the Roth IRA became available to all investors. Should your clients convert their Traditional IRAs to Roth IRAs? Calculator
Learn more about Putnam's Traditional and Roth IRAs. PDF
Download our Case for Converting to a Roth IRA investor education piece. PDF
Review the 2017 tax rates, schedules, and contribution limits PDF
Review the 2016 tax rates, schedules, and contribution limits. PDF
Download fillable applications and forms for the Putnam Roth IRA. Web page

Withdrawals are subject to income tax, and those made before age 59½ may be subject to an additional 10% tax.