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Description |
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Eligibility
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You may contribute at any age as long as you have earned compensation subject to income limits.
Single: Up to $107,000 to qualify for full contribution; $107,000 - $122,000 to qualify for partial contribution.
Married Filing Jointly: Up to $169,000 to qualify for full contribution; $169,000 to 179,000 to qualify for partial contribution. |
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Maximum Annual Contribution Limit
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2011: $5,000.
(This is the maximum total that may be contributed to all of your IRA accounts annually.) |
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Catch-up Contributions
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Over age 50 (as of the end of the calendar year), you may contribute an additional $1,000 annually. |
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Tax Advantage
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Assets grow tax-deferred without penalties or tax consequences. |
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Tax Deductibility
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Contributions are not tax-deductible. |
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Distributions
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No required distribution starting date. Distribution is required upon death of account owner. |
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Withdrawals
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Contributions may be withdrawn without penalty at any time. For earnings, if you are under age 59½ and your withdrawal is not for one of the following reasons, the withdrawal will be subject to a 10% early withdrawal penalty:
- Death or disability of account owner
- Part of a series of substantially equal periodic payments
- Certain major medical expenses
- Medical insurance premiums after the IRA owner has received unemployment compensation for more than 12 weeks
- Qualified first time home purchase
- Qualified higher education expenses
- IRS levy
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Tax Credits for Low- and Moderate-Income Savers
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Low- and moderate-income savers who make voluntary contributions to retirement savings plans and IRA’s are eligible for an additional tax break, depending on your tax bracket.
50% Tax Credit
- Individual Tax Filing: $0 - $17,000
- Joint Tax Filing: $0 - $34,000
20% Tax Credit
- Individual Tax Filing: $17,001 - $18,250
- Joint Tax Filing: $34,001 - $36,500
10% Tax Credit
- Individual Tax Filing: $18,251 - $28,250
- Joint Tax Filing: $36,500 - $56,500
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