Types

• Two types of Roth IRAs are available as of 2010: the standard Roth IRA and the Roth 401k. The standard plan is open to anyone wishing to have an IRA savings plan. A Roth 401k is an employer-sponsored plan.
  
  

Contributions

• An individual may make an annual contribution of up to $5,000 to a Roth IRA as of 2009. Contributions are made with taxed-income; no deduction for contributions made into a Roth IRA is available on a tax return. Through a Roth 401k plan, employees can contribute up to $15,000 a year.
  
  

Limitations

• Income limitations apply with the standard Roth IRA. Single individuals must make less than $110,000 adjusted gross income to contribute; married couples must make less than $160,000.
  
  

Withdrawals

• Both types of Roth IRAs contain contributions that have already been taxed; therefore, there are no future tax consequences on the account. When withdrawals are made, the account holder pays no taxes as long as he meets certain requirements: the account holder must be at least 59½ years old and the account must be held for at least five years before the withdrawal.