Contributions are non-deductible but all withdrawals, including earnings, are tax-free if the account has been open for five years and the account holder is 59 ½ or older. IRA allows penalty-free and tax-free withdrawals at any time (until total distributions from all Roth IRAs exceed the contribution amount - no distribution is subject to either taxation or penalty). Transferring money from a traditional IRA to a Roth - a procedure known as converting. Anyone willing to pay the income taxes due upon making such a move will be able to funnel retirement savings into a Roth, where it can grow tax-free. Contribution Limits for the 2020 and 2021 Tax Year $6,000 for individuals, $12,000 for married couples Catch up contributions for IRA owners 50 years or older is an additional $1,000