| Your Filing Status | Modified Adjusted Gross Income * |
Your Roth IRA eligibility ** |
|---|---|---|
| Single | $95,000 or less | Full contribution |
| $95,001 to $109,999 | Reduced Contribution | |
| $110,00 or more | Sorry, no contribution | |
| Married, filing jointly |
$150,000 or less | Full contribution |
| $150,000 to $159,000 | Reduced Contribution | |
| $160,00 or more | Sorry, no contribution |
* Determined before reduction for any IRA deduction.
** Total family contribution may not exceed total family compensation.
Who can play:
Anyone with earned income can contribute, no matter what age, as long as you're eligible according to the chart above. And it doesn't matter if you already participate in a company retirement plan. If you are married and do not work, but your spouse does, you can also make a Roth IRA contribution.
How much you can put into your Roth IRA:
The maximum amount you can put into your Roth IRA is the same as for a traditional IRA.(But you cannot deduct your Roth IRA contribution from your total earnings for income tax purposes.)
| Year | Age 49 and under | Age 50 and over |
|---|---|---|
| 2003-2004 | $3,000 | $3,500 |
| 2005-2007 | $4,000 | $4,500 |
| 2008-2010 | $5,000 | $5,500 |
* This amount or 100% of your earned income, whichever is less.
Deadlines for making Roth IRA contributions: You can make your Roth IRA contribution for a tax year anytime before the tax filing due date for that year.* For example, for 2003 you must make your contribution before April 15, 2004. * A filing extension does not extend the contribution deadline. |
|||
When you get to take the money out: You can withdraw the contribution portion of your Roth IRA any time without tax or penalty. After you've had the Roth IRA for five years, you can withdraw any investment earnings portion without paying a 10% IRS penalty or federal tax as long as you have met any one of the conditions in the box. When you have to take the money out: Actually, there is no rule You won't be paying any federal income taxes, so Uncle Sam is not interested in when you take the money out of your Roth IRA. As a matter of fact, you don't ever have to receive your Roth IRA distributions. In most cases, you can pass the assets on to your heirs, giving them the benefit of no federal income taxes on the money. |
Roth IRA distribution Guidelines RETIREMENT. Your Roth IRA earnings are available to you without tax or penalty once the account has been open for five years and you are age 59½ or older. HOME PURCHASE. After the account has been open for five years, you can use up to $10,000 (lifetime maximum) of your Roth IRA earnings to fund a first-time home purchase without tax or penalty. OTHER NEEDS. You may withdraw your contributions at any time without taxes or penalty. |
||
| Annuities Compound Interest |
IRA Basic's Long Term Care |
Traditional IRA Health Insurance |
Roth IRA Life Insurance |
IRA Comparisons Rule of 72 |
| Gary Jones Insurance Agency | CA License #0E22842 |
| 508 Main Street | 310-615-0940 Phone |
| El Segundo, CA 90245 | 310-615-0994 Fax |