Roth IRA

A Roth IRA (Individual Retirement Account) is one of the most popular ways to save for retirement. Below are some of the key features to help you determine if a Roth IRA might be the right choice for you:

  • ​Features tax-free distributions if withdrawn after age 59 ½ and the account has been open for at least five years
  • Offers investment flexibility
  • No required minimum distributions during original account owner’s lifetime
  • Expectation of same or higher income tax bracket after retirement
  • Interested in increased savings for retirement

Unlike a traditional IRA, Roth IRA contributions are not tax-deductible.

Eligibility Requirements

You can contribute at any age as long as your Modified Adjusted Gross Income (MAGI) meets the following limitations:

  • Full contribution if MAGI is less than:
    • $138,000 (single) for 2023
    • $146,000 (single) for 2024
    • $218,000 (joint) for 2023
    • $230,000 (joint) for 2024
  • Partial contribution if MAGI is less than:
    • $153,000 (single) for 2023
    • $161,000 (single) for 2024
    • $228,000 (joint) for 2023
    • $240,000 (joint) for 2024


You can withdraw contributions at any time free of tax and penalty. Earnings are income tax free if you've held the account for over five years and you are 59 ½ or older.

You may be charged a 10% IRS early withdrawal fee if you withdraw earnings before the age of 59 ½.

Investment Options

You have various options for investing in a Roth IRA:

  • Mutual Funds
  • Stocks
  • Bonds
  • Annuities

Contribution Deadline and Limits

The maximum annual contribution to a Roth IRA is the lesser of $6,500 for tax year 2023 and $7,000 for 2024 or 100% of compensation. For those individuals who are 50 or older at the end of the taxable year, an additional catch-up contribution of $1,000 may be made.

Contributions aren't tax deductible and are made with after-tax dollars. If eligible, you may open or contribute to an existing Roth IRA for the tax year 2023 until Apr. 15, 2024.

Existing IRA Transfer

Do you have an existing Roth IRA you would like to transfer to Frost? There are a few simple steps to get your Roth IRA balance transferred:

  1. ​Contact a Frost wealth advisor at 1-800-437-5107
  2. Provide your non-Frost Roth IRA account information to Frost
  3. A Frost wealth advisor will assist in the completion of documentation necessary for transfer
  4. Frost will request the transfer directly from your prior institution

Transfers can take two to six weeks depending on the assets being transferred.

Contact one of our Frost wealth advisors by calling
1-800-437-5107 for more details.