|
|
Roth
IRA |
Traditional
IRA |
| Who
can contribute? |
Anyone who has income from compensation (or who is filing jointly with
a spouse who earns compensation), with the following MAGI:*
For 2009 and 2010:
- Up to $105,000 for single filers
- Up to $166,000 for joint filers
Reduced contributions allowed for higher
incomes:
- Up to $105,000 for single filers
- Up to $166,000 for joint filers
Reduced contributions allowed for higher incomes:
- Up to $120,000 for single filers for 2009 and 2010
- Up to $176,000 in 2009 ($177,000 in 2010) for joint filers
|
Anyone
under age 70 1/2 who has income from compensation (
or who is filing jointly with a spouse who earns compensation)
Anyone who has received a distribution from a qualified
retirement plan and decides to roll over the proceeeds
of the plan into an IRA |
| How
much can I contribute? |
$5,000 for 2009 ($6,000 for those 50+)
$5,000 for 2010 ($6,000 for those 50+)
|
$5,000 for 2009 ($6,000 for those 50+)
$5,000 for 2010 ($6,000 for those 50+)
|
| Who
can make deductible contributions? |
Contributions
are not deductible |
Single
individuals
- Not
active in employer retirement plans
- Active
in employer retirement plans with MAGI of less
than $55,000 in 2009 and $56,000 in 2010
Married
couples
- With
neither spouse active in employment retirement
plan
Married
individuals
- Active
in in employer retirement plans with joint tax
returns showing MAGI of $89,000 in 2009 and 2010
- Not
active in employer retirement plans with spouses
who are, as long as MAGI is $166,000 or less in 2009 and $167,000
or less in 2010
|
| What
are the tax advantages? |
- Earnings
are tax-free if account is open for five tax years
and withdrawn for a qualified reason
- Not
required to start withdrawals at age 70 1/2
|
- Earnings
grow tax-deferred until withdrawn
- Contributions
may be tax deductible
|
| When
can I withdraw without restrictions? |
- Regular
contributions can be withdrawn tax-free and penalty-free
at any time
- After
the account has been open for five tax years, earnings
can be withdrawn tax- and penalty- free for any
of the following reasons: age 59 1/2, disablility,
death, or first-time home purchase**
|
- Qualified
higher-education expenses
- First-time
home purchase**
- Age
59 1/2
- Disability
- Qualifying
medical expenses
- Payment
to beneficiaries upon owner's death
- Payment
of health insurance premiums while unemployed for
12 weeks or longer
|
|
Not intended as tax advice. Pleae consult a qualified
tax advisor. *MAGI - Modified Adjusted Gross Income
from a federal tax form. ** Lifetime limit for exemption
on first-time home purchase is $10,000. |
|
Questions?
Call 1-800-288-6423 or 610-927-4000, in the Reading,
PA area.
|
