The New York City Employee IRA


Contributing to Your Roth NYCE IRA

Making a contribution to your Roth NYCE IRA is easy. After establishing a Roth NYCE IRA, simply send a check or money order for the amount desired, specifying that it is a Roth contribution, along with the NYCE IRA Deposit Form to the address stated on the form. The minimum initial deposit is $100. You can contribute as often as you like, but remember that you are responsible for making sure you do not contribute in excess of the IRA contribution limits.

 

In addition, you can roll over assets from another retirement plan to your Roth NYCE IRA account. See "Learn more about funding your Roth NYCE IRA using a rollover" for more information.

 

Contributions can be made to your Roth NYCE IRA at anytime during the year or by the deadline for filing your federal income tax return for that year, without including extensions. Contributions to the the NYCE IRA must be received by the NYCE IRA Administrator prior to the tax filing deadline.

 

Unlike a traditional IRA, you cannot deduct contributions to a Roth IRA. But, if you satisfy the requirements, Qualified Distributions are tax free. (See the Roth NYCE IRA Withdrawals section for detailed information.) Contributions can be made to your Roth NYCE IRA after you reach age 70½ and you can leave amounts in your Roth NYCE IRA as long as you live.

 

Your eligibility to make contributions to the Roth NYCE IRA depends on whether or not you have taxable compensation and your adjusted gross income and tax filing status.

 

If you are not eligible to contribute to the Roth NYCE IRA, or your Roth contribution is in excess of the maximum annual IRA contribution limit, excess contributions must be distributed from the NYCE IRA prior to the tax return due date for the taxable year. If you fail to remove the amounts, you are subject to an annual 6-percent excise tax on those contributions.

 

The City of New York, its custodian, and service providers are not responsible for determining or tracking the cost basis (non-taxable contributions) to the Roth NYCE IRA.

 

A Roth NYCE Spousal IRA can be funded through contributions or rollovers.

  • Contributions - Both the employee and the spouse can contribute to the Roth NYCE Spousal IRA as long as the couple files a joint return, and has enough taxable compensation to cover the contribution.
  • Rollovers - A spouse can roll over assets into their Roth NYCE Spousal IRA from a Roth 401(k) plan or a Roth IRA. Assets can also be converted from a traditional IRA to the Roth NYCE Spousal IRA. Only retirement plans or IRAs in the spouse's own name are eligible for rollover into the NYCE Spousal IRA.


Learn more about funding your Roth NYCE IRA using a rollover
Download the NYCE IRA Deposit Form
Selecting Your Investments


Taxable Compensation


Generally, taxable compensation is wages, salaries, tips, professional fees, bonuses, and other amounts you receive for providing personal services. You must have compensation to be eligible to make contributions to the Roth NYCE IRA. Compensation does not include any of the following items:

 

  • Earnings and profits from property, such as rental income, interest income, and dividend income
  • Pension or annuity income (including distributions from 457 plans, 401(k) plans, 403(b) plans and IRAs)


Contribution Limits

The contribution limit to your Roth NYCE IRA for 2020 will be the lesser of the following amounts:

  •  $6,000; or 
  • Your taxable compensation for the year.

 

If you will be age 50 or over in 2020, the most that you can contribute to your Roth NYCE IRA will be the lesser of the following amounts:

  • $7,000; or 
  • Your taxable compensation for the year.

 

If you have more than one IRA, either traditional or Roth, the limit applies to the total contributions made on your behalf to all your IRAs for the year.

 

The contribution limit to your Roth NYCE IRA for 2019 will be the lesser of the following amounts:

  •  $6,000; or 
  • Your taxable compensation for the year.

 

If you will be age 50 or over in 2019, the most that you can contribute to your Roth NYCE IRA will be the lesser of the following amounts:

  • $7,000; or 
  • Your taxable compensation for the year.

 

If you have more than one IRA, either traditional or Roth, the limit applies to the total contributions made on your behalf to all your IRAs for the year.