Roth IRAs

In 2013, the maximum contribution is $5,500 if you are under age 50 and $6,500 if you are older than age 50. However, you are subject to the phase out rules, based upon your income level. Please find the information on phase out rules or contact a local CPA for greater details and how it impacts our situation.
In 2014: The AGI phase-out range for taxpayers making contributions to a Roth IRA is $181,000 to $191,000 for married couples filing jointly, up from $178,000 to $188,000 in 2013.
For singles and heads of household, the income phase-out range is $114,000 to $129,000, up from $112,000 to $127,000.
For a married individual filing a separate return, the phase-out range is not subject to an annual cost-of-living adjustment and remains $0 to $10,000

In 2016, the AGI phase-out range for taxpayers making contributions to a Roth IRA is $184,000 to $194,000 for married couples filing jointly, up from $183,000 to $193,000 in 2015.
For singles and heads of household, the income phase-out range is $117,000 to $132,000, up from $116,000 to $131,000.
For a married individual filing a separate return, the phase-out range is not subject to an annual cost-of-living adjustment and remains $0 to $10,000.
In 2015, the AGI phase-out range for taxpayers making contributions to a Roth IRA is $183,000 to $193,000 for married couples filing jointly, up from $181,000 to $191,000 in 2014.
For singles and heads of household, the income phase-out range is $116,000 to $131,000, up from $114,000 to $129,000.
For a married individual filing a separate return, the phase-out range is not subject to an annual cost-of-living adjustment and remains $0 to $10,000.
In 2014, For the filing status of: Married Filing Jointly AGI Phase-out range = $181,000 - $191,000
For the filing status of: Single AGI Phase-out range = $114,000 - $129,000
For the filing status of: Married filing Separately AGI Phase-out range = 0 - $10,000

There is currently no provision in the code which allows for distributions from any IRA to pay for college education without incurring severe tax ramifications. We recommend that you consider distributions from your IRA to pay for college costs as your last choice. Explore other options first.

A Roth IRA is an individual retirement plan that bears many similarities to the traditional IRA, but contributions are not tax deductible and qualified distributions are tax free.
Similar to other retirement plan accounts, non-qualified distributions from a Roth IRA may be subject to a penalty upon withdrawal.
A qualified distribution is one that is taken at least five years after the taxpayer establishes his or her first Roth IRA and when he or she is age 59.5, disabled, using the withdrawal to purchase a first home (limit $10,000), or deceased (in which case the beneficiary collects). Since qualified distributions from a Roth IRA are always tax free,

A Roth IRA is a special nondectible IRA. Even though you contribute to the account with your after-tax dollars, all withdrawals are tax free if you meet the following conditions: you are at least 59 and a half and an account has been in existence for at least five years. In other words, you will never pay any taxes on earnings that your IRA fund will generate after turning 59 and a half. There are no mandatory minimum distributions at age 70 and a half, as in the case of a traditional IRA plan. This feature allows passing on more savings to your beneficiaries if you wish to do so. You can withdraw money from your Roth IRA at any time without paying taxes up to the amount of your contributions. Dipping into the earnings will have no tax consequences. There is no age limit on contributions. Every person with earned income, within limits established by the IRS (in general, your modified adjusted gross income must be less than $112,000, The phase-out range is $112,000 to $127,000 for married couples filing jointly and from $173,000 to $183,000 for non MFJ taxpayers except MFS which is $ between $0 and $10.000), is eligible to open a Roth IRA. For this purpose, the IRS considers as earned income wages, salaries and money made from being self-employed. Other income is considered passive (dividends, interest, rental properties etc.) and can not be used to fund a Roth Individual Retirement Account.

Yes. If you converted a conventional IRA to a Roth IRA, and now want to reconvert it back to a conventional IRA, you may do so with limitations. When you changed the IRA to a Roth IRA, it is termed a "conversion".
When you change it back from a Roth IRA to conventional IRA it is termed a "re-characterization".
The IRS has imposed a waiting period before a reconversion may be made. You may not convert to a ROTH IRA, re-characterize to a traditional IRA and Reconvert the same funds to a Roth IRA in the same calendar year.
You must wait more than 30 days from the date of the re-characterization before a valid reconversion may be made.
You may also file an amended return (IRS Forms 1040X with Form 8606) to make this re-characterization.

No. You are allowed to re-characterize your Roth IRA to a conventional IRA up until the final due date of the income tax return. This means the due date plus extensions translate from April 15th to potentially Oct 15th.

No. You may re-characterize your Roth IRA to a conventional IRA by filing an amended return. You would file IRS Form 1040X with Form 8606. This would enable you to get a refund on the Roth conversion payment amount you already paid with the original 1040 income tax return.

Yes. The IRS lets you make changes from Roth IRAs to regular IRAs and back, more than once. After you re-characterize a Roth IRA to a regular IRA, you can convert it again but not until the following year, or thirty days later, whichever takes longer.