Roth IRA's

Is A Roth IRA Right for You?

Are you looking for a tax free nest egg at retirement? Perhaps a Roth IRA is your answer.

Unlike other retirement accounts, Roth IRAs use after-tax contributions, but proceeds (including earnings) can be withdrawn tax-free as long as you are over 59 ½ years old and have had the Roth IRA as least five years.

The basic Roth IRA rules are:

• You must first have earned income for the year (e.g. wages, salary, tips, fees)
  
  
• Your modified adjusted gross income must be less than:
  1. $166,000 if married
  2. $105,000 if single
  3. $10,000 if married filing separately
     
     
• There is no age limit for contributions. You can be any age.
  
  
• You can contribute a maximum of $5,000 ($6,000 if age 50 or over).
  
  
• The maximum contribution phases out if your income is between:
  1. $166,000 and $160,000 if married
  2. $105,000 and $110,000 if single
  3. $0 and $10,000 if married filing separately
     
     
• Both spouses may make a Roth IRA contribution.
  
  
• Contributions may be made anytime during the year or by your tax filing due date
  
  
• There is no mandatory withdrawal when you reach a certain age as there is Traditional IRAs (70 ½).
  
  

If you are interested in opening up a Roth IRA, please contact your preferred bank or brokerage institution.