Products & Services
IRAs
An Individual Retirement Account is an excellent tool for retirement saving, unlike most investments, contributions may be tax deductible and will grow either tax-deferred or tax-free.
Traditional IRA
Qualifications
Must have earned income and not have reached age 70 1/2 by the end of the year.
Maximum Contributions
Taxable Years beginning
In 2008 and after.....$5,000.00
Tax Status of Earnings
Tax-deferred until withdrawal. Contribution Restrictions Yes, if active participant in employer retirement plan.
CONTRIBUTION PHASEOUTS
Singles Married Couples
CONTRIBUTION PHASEOUTS
Singles Married Couples
2006 same as 2005 $75,000-$85,000
2007 same as 2005 $80,000-$100,000
2008 $53,000–$63,000 $85,000-$105,000
2009 $55,000-$65,000 $89,000-$109,000
2010 $56,000-$66,000 same as 2009
2011 same as 2010 $90,000-$110,000
2012 $58,000-$68,000 $92,000-$112,000
Yes, contributions up to the limit are fully tax deductible if you are not an active participant in a retirement plan. Otherwise phaseout rules apply.
Penalties for Early Withdrawal
None if:
- Over 59 1/2
- Death or disability
- Qualified medical expenses
- Certain health insurance
- Qualified college expenses
- 1st time home purchase (up to $10,000)
- Due to IRS levy
Required Distributions
Must begin by April following year participant turns 70 1/2.
Contributions After Age 70 1/2
Not Allowed.
Roth IRA
Qualifications:
Must have earned income. There are no age restrictions
Maximum Contributions:
Taxable Years beginning
In 2002 through 2004.....$3,000.00
In 2005 through 2007.....$4,000.00
In 2008 and after.....$5,000.00
Tax Status of Earnings
Not taxed. Earnings grow tax-free.
Contribution Restrictions
Yes, contributions phase out.
CONTRIBUTION RESTRICTIONS
Singles Married Couples
2009 $105,000-$120,000 $169,000-$176,000
2010 same as 2009 $167,000-$177,000
2011 $107,000-$122,000 $169,000-$179,000
2012 $58,000-$68,000 $173,000-$183,000
Tax Deduction
No.
Penalties for Early Withdrawal
None if:
- Over 59 1/2
- Death or disability
- Qualified medical expenses
- Certain health insurance
- Qualified college expenses
- 1st time home purchase (up to $10,000)
Required Distributions
Only after death of the participant.
Contributions After Age 70 1/2
Allowed.
Coverdell ESA (Formerly Education IRA)
Qualifications:
The designated beneficiary must be an individual under the age of 18. Beginning in 2002, the age 18 limitation will not apply to any designated beneficiary with special needs.
Maximum Contributions:
Taxable Years beginning In 2002 and after.....$2,000.00 per beneficiary. Contributions do not count against the limits for IRA's
Tax Status of Earnings
Not taxed. Earnings grow tax-free. Contribution Restrictions Yes, contributions phaseout between $95,000-$110,000 for singles and $150,000-$160,000 for married couples. Fot tax years beginning 2002, $190,000-$220,000 for married couples.
Tax Deduction
No.
Penalties for Early Withdrawal
None if: For payment of qualified education expenses
Required Distributions
Must be complete 30 days after beneficiary reaches age 30 or dies.
Contributions After Age 70 1/2
Allowed.
