(Depending on IRA assets, a Roth IRA may or
may NOT be FDIC insured.)
Roth contributions are non-deductible,
and earnings accumulate TAX FREE.
- Individuals may make non-deductible
contributions to a ROTH IRA of 100% of earned income or a maximum
total of $3,000.00 per year in 2003, whichever is less. See table
below for current contribution limits.
- Single filers with an Adjusted Gross
Income (AGI) less than $95,000.00 and joint filers with an AGI less
than $150,000.00 are eligible for the $2000.00 maximum contribution.
- Distributions will not be included in
income or receive the 10% Premature Distribution Penalty as long as
the principal and earnings have remained in the IRA for at least 5
years from the first contribution date and the withdrawal is
considered a "qualified distribution".
Economic
Growth and Tax Relief Reconciliation Act of 2001 Traditional and Roth
IRA Increased Contribution Limits Effective 2002
|
Contribution Year |
Contribution Limit Under Age 50 |
Contribution Limit Age 50 And Over
|
|
2001 |
$2,000.00 |
$2,000.00 |
|
2002 |
$3,000.00 |
$3,500.00 |
|
2003 |
$3,000.00 |
$3,500.00 |
|
2004 |
$3,000.00 |
$3,500.00 |
|
2005 |
$4,000.00 |
$4,500.00 |
|
2006 |
$4,000.00 |
$5,000.00 |
|
2007 |
$4,000.00 |
$5,000.00 |
|
2008 |
$5,000.00 |
$6,000.00 |
|
2009 |
COLA in $500.00 Increments |
COLA in $500.00 Increments |
