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Roth IRA
The Janus Advantage
 

A Roth Individual Retirement Account (IRA) allows a person who does not exceed certain income limits to invest money by making non-deductible contributions that grow tax-deferred. They can make these investments whether they are covered by an employer-sponsored retirement plan or not. Working taxpayers and nonworking spouses of any age may be eligible to open a Roth IRA.

The key difference between a Roth IRA and a Traditional IRA is that, in a Roth IRA, money is not taxed when withdrawn for qualified distributions. Although there are income limitations, some investors can receive greater tax savings and more distribution flexibility with a Roth IRA than with a Traditional IRA. It may be a solution when looking for tax savings in the future, rather than today.

Review a more detailed comparison between a Roth IRA vs. a Traditional IRA.



Is a Roth IRA right for you?

  • Are you looking for tax-deferred growth with tax-free withdrawals when you retire?
  • Is your income too high to make deductible contributions to a Traditional IRA?
  • Do you think you'll be in a high tax bracket when you retire?
  • Are you interested in making contributions to your IRA after age 70 ½?

Tax features

  • Investments grow tax-deferred.
  • Qualified withdrawals are not taxed.

Contribution details

  • An individual can contribute up to $5,500 (or 100% of earned income, whichever is less) for tax years 2013 and 2014.
  • Over age 50? Make additional "catch-up" contributions of $1,000 for tax years 2013 and 2014.
  • To be eligible for the "catch-up" contribution, you must have reached age 50 on or before December 31 of the year for which the contribution is being made.
  • Please refer to our Roth IRA tax year contribution limits table.
  • Your exact contribution amount can be calculated using the worksheets found in Publication 590 on the IRS web site at www.irs.gov.

Investment minimums

  • Minimum initial investment for a Roth IRA is $500 with subsequent investments of $50 or more per month through an Automatic Investment Program (AIP). The minimum investment is $1,000 without an AIP.
  • The minimum additional investment to an existing account is $100.

Contribution deadlines

  • You can contribute to a Roth IRA for a specific tax year starting on January 1st of that year, and the contribution deadline is your tax filing deadline (generally April 15th of the following year).
  • You cannot make contributions after that date even if you file for an income tax extension.
  • Keep in mind, contributions to a Roth IRA are not tax-deductible.

Fees

  • Janus does not currently charge any custodial account fees for opening or maintaining your Roth IRA.
  • Many competitors charge $10 or more each year.

Making withdrawals

  • Generally no penalties on withdrawals after age 59½. Taking money out of your Roth IRA Account prior to age 59 ½ will typically incur a 10% early withdrawal penalty.
  • If you need to remove money prior to 59½, check to see if these exceptions to the penalty apply.
  • If an account has been established for five years, contributions and their earnings may be distributed tax-free for qualified purposes.

Get more information right here

The Janus Universal IRA Disclosure Statement and Custodial Agreement provides more complete details about IRA accounts at Janus.

You can convert your Traditional IRA to a Roth IRA. You may also recharacterize your IRA conversion and/or annual contribution from a Roth IRA to a Traditional IRA. Janus provides details and forms to complete any of these processes.

 

Please consider the charges, risks, expenses and investment objectives carefully before investing. Please see a prospectus , or if available, a summary prospectus containing this and other information. Read it carefully before you invest or send money.

Janus funds are offered only to US Citizens (or US Resident Aliens) residing in the United States or a US Territory, and the information on this Web site is intended only for such persons. Nothing on this Web site should be considered a solicitation to buy or an offer to sell shares of any Janus fund in any jurisdiction where the offer or solicitation would be unlawful under the securities laws of such jurisdiction.

If you're a non-US citizen or resident, please see the non-U.S. funds section of our site.

Tax information contained herein is not intended or written to be used, and it cannot be used by taxpayers for the purposes of avoiding penalties that may be imposed on taxpayers. Such tax information and any estate planning information is general in nature, is provided for informational and educational purposes only, and should not be construed as legal or tax advice.

A IRA should be considered a long-term investment. IRAs generally have expenses and account fees, which may impact the value of the account. Non-qualified withdrawals may be subject to taxes and penalties. Maximum contributions are subject to eligibility requirements. Depending on your eligibility, you may not be able to contribute the maximum amount. For more detailed information about taxes, consult IRS Publication 590 or your tax adviser regarding your personal circumstance.

Janus Distributors LLC