IRA, ROTH & SEP
ACCOUNTS
ABA Roth
Tax Savings Calculator |
|
|
Traditional IRA |
Roth IRA |
|
QUALIFICATIONS
|
Must have earned income and not have reached age 70 1/2 by
the end of the year. |
Must have earned income. There are no age
restrictions. |
|
MAXIMUM
CONTRIBUTIONS
|
Taxable years beginning in 2009 and after - $5,000* |
Taxable years beginning in 2009 and after - $5,000* |
|
CATCH-UP
(50+ OVER)
|
2009 and after - $1,000* |
2009 and after - $1,000* |
|
TAX STATUS OF
EARNINGS
|
Tax-deferred until withdrawal |
Not taxed. Earnings grow tax-free. |
CONTRIBUTIONS RESTRICTIONS
(BASED ON
ADJUSTED
GROSS INCOME) |
Yes, if active participant in employer retirement plan.
Contribution phase-outs for 2009 tax year:
Singles -
$55,000 - $65,000;
Married joint - $89,000 - $109,000 |
Contribution phase-outs for 2009 tax year:
Singles -
$105,000 - $120,000;
Married joint - $166,000 - $176,000 |
|
TAX DEDUCTION |
Yes. Contributions up to the limit are fully tax
deductible if you are not an active participant in a
retirement plan. Otherwise phase-out rules apply. |
No. These are after-tax dollars. |
IRS PENALTIES FOR
EARLY WITHDRAWAL |
None if:
- Over 59 1/2
- Death or disability
- Qualified medical expense
- Certain health insurance
- Higher education expenses
- 1st time home purchase (up to
$10,000)
- Due to IRS levy
- Periodic payments
|
None if made after a
5-year period and:
- Over 59 1/2
- Death or disability
- Qualified medical expense
- Certain health insurance
- Higher education expenses
- 1st time home purchase (up to
$10,000)
- Due to IRS levy
|
|
REQUIRED DISTRIBUTION |
Must begin by April following year participant turns 70 1/2 |
Only after death of participant |
CONTRIBUTIONS AFTER
AGE 70 1/2 |
Not allowed |
Allowed |
|
* To be adjusted annually for
inflation in $500 increments.
|
|
Simplified Employee Pension - SEP Accounts |
|
If your employer chooses to setup SEP
accounts for their employees, then they may select savings
accounts or time deposit accounts. |
