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.
|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.|
|Download our Case for Converting to a Roth IRA investor education piece.|
|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.