The Economic Growth and Tax Relief Reconciliation Act of 2001 brought many changes. Contribution limits for Traditional IRAs increased from $2,000 a year to $5,000 in 2009. Plus, if you are 50 years old or over, you are allowed to make "catch up" contributions on top of your annual maximums.
This page gives you a brief description of your IRA options. Please use it as a starting point to make yourself familiar with the expanded IRA rules. Then, consult with your tax advisor about what is the best choice for you. Because tax laws are complicated, you'll want to make sure that you take into consideration your complete financial picture and strategy needs. Making an informed decision now can prevent penalties and reduced earnings in the future.
| Type of Account | Traditional IRA | ||||||||||||||||||||
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A traditional IRA may be fully or partially deductible, depending on your income level and whether or not your are considered an "active" participant in an employer sponsored plan. Deductibility is available on a sliding scal basis if your are an "active participant." The traditional IRA is a convenient savings vehicle for retirement. If the contributions are deductible, the contributions and earnings will be taxable when withdrawn. If you begin withdrawals after age 59 1/2, your tax rate will probably be lower. If you make withdrawals prior to age 59 1/2, you may be able to do so without penalty if:
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The Economic Growth and Tax Relief Reconciliation Act of 2001 brought many changes. Contribution limits for Traditional IRAs increased from $2,000 a year to $5,000 in 2009. Plus, if you are 50 years old or over, you are allowed to make "catch up" contributions on top of your annual maximums.
This page gives you a brief description of your IRA options. Please use it as a starting point to make yourself familiar with the expanded IRA rules. Then, consult with your tax advisor about what is the best choice for you. Because tax laws are complicated, you'll want to make sure that you take into consideration your complete financial picture and strategy needs. Making an informed decision now can prevent penalties and reduced earnings in the future.
| Type of Account | Traditional IRA | ||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
|
A traditional IRA may be fully or partially deductible, depending on your income level and whether or not your are considered an "active" participant in an employer sponsored plan. Deductibility is available on a sliding scal basis if your are an "active participant." The traditional IRA is a convenient savings vehicle for retirement. If the contributions are deductible, the contributions and earnings will be taxable when withdrawn. If you begin withdrawals after age 59 1/2, your tax rate will probably be lower. If you make withdrawals prior to age 59 1/2, you may be able to do so without penalty if:
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