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 AGI between $138k–$153k (single) or $218k–$228k (married, filing jointly).
- Higher-income retirement investors for whom the traditional IRA does not offer tax-deductible contributions.
- Retirement investors who expect to be in a higher tax bracket post-retirement.
- Investors who are interested in leaving a tax-free financial legacy to their heirs.
Take advantage: Putnam Roth IRA
- Tax-free growth (for qualifying withdrawals).
- No requirement to begin withdrawals after age 73.
- 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 |
|---|---|
| Should your clients convert their Traditional IRAs to Roth IRAs? | Calculator |
| 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.