- Only earned income can be contributed to a Roth IRA.
- You can contribute to a Roth IRA only if your income is less than a certain amount.
- The maximum contribution for 2021 is $6,000; if you’re age 50 or over, it is $7,000.
- You can withdraw contributions tax-free at any time, for any reason, from a Roth IRA.
- You can withdraw earnings from a Roth IRA, but it may trigger taxes and penalties depending on your age and that of the account.