Roth IRA

You are eligible to contribute to a Roth IRA if you or your spouse has compensation at or below the limits for the tax year. For single filers, the limits are $105,000 for 2009 and $105,000 for 2010. For joint filers, the limits are $166,000 for 2009 and $167,000 for 2010.

Features:

• You cannot take a tax deduction for any contribution that you make to a Roth IRA. However, when you make a withdrawal, you pay no taxes on any of the earnings that your contributions have generated, provided you take the earnings as part of a "qualified distribution".
• To fulfill the qualified distribution requirements, you must first meet a five-year holding period for your Roth IRA. This period begins with the tax year for which your first contribution is made. After that, any earning you withdraw for "qualified distribution" reason are income tax free and IRS penalty tax free.
• Qualified distributions reasons are:
  • Made on or after the date on which you attain age 59½
  • Made to your beneficiary (or your estate) upon your death
  • Attributable to your being disabled
  • Qualified first-time home buying (up to $10,000)

Annual contribution rates in any combination of Traditional and Roth IRAs are:

• Call us at 877-668-2265 or speak to your tax advisor to learn more about Roth IRAs.