Explore the tax benefits of a Roth IRA

With a Roth IRA, you'll pay taxes on the money going into your account, and then all qualified withdrawals are tax-free.1

Is a Roth IRA right for you?

The main difference between a Roth IRA and traditional IRA is the way they are taxed. Your Roth IRA contributions are not tax deductible, but your qualified withdrawals in retirement will be tax-free.

Roth IRA

You won't pay taxes on qualified withdrawals in retirement.

  • Contributions are not tax deductible
  • Eligibility is based on how much you earn
  • Never pay taxes on qualified withdrawals after age 59½
  • Withdrawals are never required
  • Access contributions at any time tax-free
  • Combined Roth and traditional IRA contributions per year: $7,000, or $8,000 if you're age 50+

Traditional IRA

Your potential earnings will grow tax-deferred.

  • Contributions may be tax deductible
  • Anyone with earned income can contribute
  • Pay no taxes until money is withdrawn
  • Withdrawals are required by age 731
  • Combined Roth and traditional IRA contributions per year: $7,000, or $8,000 if you're age 50+

Still not sure which IRA is right for you? Try our IRA selector tool


Consider the benefits of a Roth IRA conversion

You can roll over most retirement plans into a new Roth IRA. But what is a Roth IRA conversion? This is when you roll over or "convert" funds from non-Roth accounts, such as traditional IRAs, 403(b)s, and 401(k)s, into a new Roth IRA. You pay taxes when you complete your conversion, but you can withdraw your money tax-free in retirement. Learn more about IRA rollovers

Conversion benefits Things to consider:
  • Receive income-tax-free earnings in retirement
  • Keep funds in a retirement account as long as possible
  • Leave income-tax-free assets to your family and your heirs
  • Money converted today is taxed at your current income tax rate
  • Anyone can convert retirement savings to a Roth, regardless of income

What makes TIAA IRAs different?

Our IRAs can help complement your workplace plan and offer a variety of benefits to move you toward your retirement goals.

A wide array of investments

Gain access to a variety of investment choices, including mutual funds, stocks, bonds, annuities and more.

Lifetime income with flexible options

Build your portfolio to pursue your retirement needs, with options that include guaranteed growth and lifetime income.2


Advice and support

We offer complimentary advice and support to help you figure out which investment strategy may be right for you.3

Open a Roth IRA today

Open, fund and invest in a Roth IRA.

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Speak with a consultant for assistance from start to finish. Available weekdays, 8 a.m. – 7 p.m. (ET).

1Withdrawals of earnings prior to age 59½ are subject to ordinary income tax and a 10% penalty may apply. Earnings can be distributed tax free if distribution is no earlier than five years after contributions were first made and you meet at least one of the following conditions: age 59½ or older or permanently disabled. Beneficiaries may receive a distribution in the event of your death. For governmental 457(b) plans, withdrawals are only allowed following separation from service or when you reach age 73. Your RMD Applicable Age was 70 ½ if you were born before 7/1/49; 72 if you were born on or after 7/1/49 or in 1950; 73 if you were born between 1951 and 1958; 75 if you were born in 1960 or later. If you were born in 1959, federal guidance is needed to determine if your RMD Applicable Age is 73 or 75.

2Any guarantees under annuities issued by TIAA are subject to TIAA's claims-paying ability.

3Some IRAs may be eligible for support only, and not advice services. Advice services use a methodology from an independent third party.

This material is for informational or educational purposes only and does not constitute fiduciary investment advice under ERISA, a securities recommendation under all securities laws, or an insurance product recommendation under state insurance laws or regulations. This material does not take into account any specific objectives or circumstances of any particular investor, or suggest any specific course of action. Investment decisions should be made based on the investor's own objectives and circumstances.

Before rolling over or consolidating assets, consider your other options. You may be able to leave money in your current plan, withdraw cash or roll over the assets to your new employer's plan if one is available and rollovers are permitted. Compare the differences in investment options, services, fees and expenses, withdrawal options, required minimum distributions, other plan features, and tax treatment. Speak with a TIAA consultant and your tax advisor regarding your situation. Learn more at TIAA.org/reviewyouroptions.Opens in a new window

Certain securities may not be suitable for all investors. Brokerage Services are provided by TIAA-CREF Brokerage Services, a division of TIAA-CREF Individual & Institutional Services, LLC.