Additional IRA Infomation
Other Products
|
Individual Retirement Accounts (IRAs)
Traditional IRA vs Roth IRA
| Category |
Traditional IRA |
Roth IRA |
2007
Annual Contribution Limits*
2008
Annual Contribution Limits* |
Single: $4,000
Married: $8,000
Age 50+: $5,000
Single: $5,000
Married: $10,000
Age 50+: $6,000
|
Single: $4,000
Married: $8,000
Age 50+: $5,000
Single: $5,000
Married: $10,000
Age 50+: $6,000
|
| Growth** |
Tax-Deferred |
Tax-Free |
| Contributions** |
May Be Tax Deductible |
Not Tax Deductible |
| Deadline for Contributions |
2007: April 15, 2008 |
2007: April 15, 2008 |
| Tax treatment of distributions |
All earnings and deductible contributions are taxed. All non-deductible contributions are received tax-free. |
Contributions are withdrawn tax-free. Earnings are not taxable if the distribution was made 5 years after first contribution and one of the following occurs:
- purchase a first home
- attain age 59½
- disability
- death
|
| Eligibility** |
Any individual (or married couple) with earned income and under age 70½ is eligible to contribute. Participation in a qualified plan and income limits determine whether the contributions are tax deductible. |
Contributions may be made by any individual (or married couple) with earned income, who meets the following Adjusted Gross Income (AGI) limits:
- Single: Up to $114,000
- Married: Up to $166,000
|
| Age |
Qualified distribution may begin at 59½. They must begin no later than age 70½. |
Qualified distributions may begin at 59½, but are never required. |
* Contributions you make to Traditional or Roth IRAs both count towards these limits. Married contributions assume you are filing jointly. Your savings are federally insured to $250,000 by the National Credit Union Administration (NCUA).
** For information on qualified distributions and contributions, consult your tax advisor.
|
|
|Home
