Starting early Early savings mount up. In the short time since its inception in 1998, the Roth IRA already has made it into the Random House Webster's College Dictionary. No taxes on investment profits if the account is open at least five years.
Income is the criterion for eligibility.
You can contribute to a Roth IRA even if you have an employer-sponsored retirement plan. That's what attracted Anthony Breault last year. Breault, a property manager in Hartford, Conn., says he would prefer a traditional deductible IRA because he likes the idea of getting an immediate tax deduction for his contribution. But he can't take a deduction because he has an employer-sponsored retirement plan, so he and his wife, Holly, will contribute to Roth IRAs this year. Although it's never advisable to raid your retirement accounts without a good reason, you can withdraw what you contributed to a Roth IRA at any time, for any reason without tax or penalty.