Roth IRA
The ideal retirement plan allows you to use your money
when you need it most. A Roth Individual Retirement
Account (IRA) provides you with flexibility and convenience.
Unlike a Traditional IRA, contributions to a Roth IRA
are allowed after age 70½ as long as you have
earned income.
This site is provided for your information and does
not constitute tax advice. Please consult with your
accountant or tax advisor for specific guidance. Withdrawals
from an IRA made prior to age 59½ may be subject
to a 10% IRS penalty in addition to ordinary income
taxes.
Additional Roth IRA Benefits:
When to Consider a Roth IRA:
-
You are a middle-income
investor who wants tax-free earnings.
-
Your income exceeds $166,000
for married taxpayers or $105,000 for single
taxpayers. Partial contributions allowed for
Roth IRAs between $105,000—$120,000 if
single and between $166,000—$176,000
for married, filing jointly.
-
You want to make contributions
after age 70½.
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Economic Growth and Tax Relief Reconciliation Act of
2001
The Economic Growth and Tax Relief Reconciliation Act
of 2001 changed IRA contribution limits as indicated
below.
IRA Annual Contribution Limits (Traditional
and Roth):
• 2008 and thereafter $5,000 (indexed beginning
in 2009)
IRA Catch-up Contributions (Traditional and
Roth)2:
• 2006 and thereafter $1,000
Want to determine how much money you will need to retire.
Use one of our calculators.
For more information on Personal Finance
Options, click
here to send us your questions, or contact us at
1-800-946-4178.
1 Withdrawals from an IRA
made prior to 59½ may be subject to a 10% IRS
penalty in addition to ordinary income taxes.
2 IRA
holders age 50 or older may contribute additional amounts
in excess of the basic annual contributions.
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