|
Traditional IRA Roth IRA Rollover IRA Other
Traditional IRA
Your savings in a traditional IRA get the benefit of tax-deferred growth until they are withdrawn. However, contributions may or may not be tax-deductible depending on your income level and whether you (and your spouse, if married) are covered by an employer’s retirement plan.
If you want more information about IRAs please call us at 781-239-1187 or 800-327-7003 or e-mail pamboston@fwg.com.
Contribution Eligibility
Anyone under age 70 ½ with earned income is eligible to make a nondeductible contribution. See below for eligibility to make a deductible contribution. Individuals with earned income who cannot or do not contribute to a Roth IRA can continue to contribute to a traditional IRA.
Contribution Limits
Contributions to a Roth IRA, traditional IRA or a combination can’t exceed the following limits:
2009 - $5,000
Catch-up contributions
Starting in 2002, individuals age 50 and older will be able to make additional contributions referred to as “catch-up ”contributions to a Roth IRA, traditional IRA or a combination of the two. These catch-up contributions can ’t exceed the following limits:
2009 - $1,000
Roth IRA
Although contributions to a Roth IRA are made with after-tax dollars, the savings grow without the bite of current taxes, and, if certain requirements are met, your investment earnings may be withdrawn tax-fee.
If you want more information about Roth IRAs please call us at 781-239-1187 or 800-327-7003 or e-mail pamboston@fwg.com.
Contribution Eligibility
Anyone with earned income not exceeding the allowable limits may contribute to a Roth IRA.
Eligibility to contribute is phased out for:
- single taxpayers with modified adjusted gross income (AGI) between $95,000 and $110,000
- married taxpayers filing jointly with AGI between $150,000 and $160,000,and
- married taxpayers filing separately with AGI between $0 and $10,000.
Contributions permitted for individuals over age 70 ½ for as long as they have earned income.
Participation in an employer-sponsored retirement plan does not affect Roth IRA eligibility.
Contribution Limits
Contributions to a Roth IRA, traditional IRA or a combination can’t exceed the following limits:
2009 - $5,000
Catch-up contributions
Starting in 2002, individual’s age 50 and older will be able to make additional contributions referred to as “catch-up ”contributions to a Roth IRA, traditional IRA or a combination of the two. These catch-up contributions can ’t exceed the following limits:
2009 - $1,000
Rollover IRA
A type of IRA that allows you to rollover distributions from your employer-sponsored retirement plan into an IRA
If you retire or otherwise leave your job all or part of your employer sponsored retirement plan may be eligible to be rolled over into a traditional IRA (often referred to as a Rollover IRA).
The primary advantage of rolling over your distribution is that your retirement funds continue to reap the benefits of tax-deferred growth until they are distributed from the IRA. The rollover option also maintains flexibility with regard to investment alternatives and future distribution options.
If you want more information about Rollover IRAs please call us at 781-239-1187 or 800-327-7003 or e-mail pamboston@fwg.com.
For more general information about IRAs go to http://www.ira.com/faq1.htm
Other Retirement Options
Progressive Asset Management also offers SEP IRAs, Profit Sharing plans, Money Purchase plans. If you want more information please call us at 781-239-1187 or 800-327-7003 or e-mail pamboston@fwg.com.
|
