Roth IRA

What is a Roth IRA?

The Mutual of America Roth IRA is a type of individual retirement variable annuity contract that generally allows you to receive distributions on a tax-free basis. The Roth IRA does not provide up-front income tax deductions for contributions, like there can be with a Traditional IRA. All contributions to a Roth IRA are made on an after-tax basis, but the Roth IRA provides the opportunity for tax-free investment earnings and tax-free distributions if qualified distributions are made.

Unlike other types of IRAs, you are not required to begin taking a distribution at any specific age, and you can continue to make contributions as long as you have earned income, even after age 70½. Mandatory distributions are only required to be made after the death of the Roth IRA contractholder.

Am I eligible for a Roth IRA?

Single taxpayers with a modified Adjusted Gross Income (AGI)* of $146,000 or less in 2024 can contribute up to $8,000 per year.
For single taxpayers with an AGI between $146,000 and $161,000, the maximum allowable contribution to a Roth IRA is proportionately reduced.
Single taxpayers with an AGI of $161,000 or more in 2024 may not contribute.
Married taxpayers filing joint tax returns with a modified AGI of $230,000 or less in 2024 can contribute up to $8,000 each per year, even if only one spouse has compensation.
For married taxpayers filing joint returns with a modified AGI between $230,000 and $240,000 for 2024, the maximum allowable contribution to the Roth IRA is proportionately reduced.
Married taxpayers filing joint returns with an AGI of more than $240,000 in 2024 may not contribute to a Roth IRA.
Married taxpayers filing separate returns cannot contribute to a Roth IRA.

*The modified AGI is used for calculating Roth IRA contribution limits. Please refer to Internal Revenue Code Publication 590 or consult with your tax adviser.

How much may I contribute to a Roth IRA?

For individuals younger than age 50, the maximum contribution in 2024 is the lesser of $7,000 or 100% of your compensation if you are single, or the lesser of $7,000 for each spouse or 100% of your combined compensation if you are a married couple filing jointly. For individuals age 50 and older, an additional $1,000 catch-up contribution can be made.

Both maximums apply to an individual's total contributions to all Roth IRAs (except rollovers) and are reduced by any contributions you may have made to any other types of IRAs.

The total amount that can be contributed is reduced until completely phased out, depending on annual income.

REMINDER: Indexing does not automatically increase the limit each year; increases only apply when the inflation-adjusted limit equals or exceeds the next incremental amount.

Learn more about Contributions & Withdrawals.

You should consider the investment objectives, risks, and charges and expenses of the variable annuity contract and the underlying investment funds carefully before investing. This and other information is contained in the contract prospectus and underlying funds prospectuses and summary prospectuses, which can be obtained by calling 800.468.3785 or visiting mutualofamerica.com. Read them carefully before investing.

Mutual of America's IRAs are individual variable annuity contracts and are suitable for long-term investing, particularly for retirement savings. The value of a variable annuity contract will fluctuate depending on the performance of the Separate Account investment funds you choose. Upon redemption, you could receive more or less than the principal amount invested. A variable annuity contract provides no additional tax-deferred treatment of benefits beyond the treatment provided to any qualified retirement plan or IRA by applicable tax law. You should consider a variable annuity contract's other features before making a decision.

Form IRA-2004 or applicable state variation