INDIVIDUAL RETIREMENT ACCOUNTS
3 IRA Types to Choose From - Traditional, Roth and EducationCurrent IRA Rates
Traditional IRA
What are the age restrictions for contributions?
Owner must be under age 70 ½
What are the income limits for contributions?
There are no limits for contributions
What is the contribution limit?
$5,000 per year (minus Roth IRA contributions)
What is the deadline for contributions?
Tax return deadline for the year
When can earnings be withdrawn tax free?
N/A
When does the 10% early distribution tax penalty apply?
Before age 59 ½, unless deceased, disabled, taking pre 59 ½ periodic payments, paying qualified medical expenses, health insurance premiums for unemployed, first-home purchase, or educational expenses. Paying this tax at the time of distribution is optional
When must distributions begin?
age 70 ½
Roth IRA
What are the age restrictions for contributions?
NONE
What are the income limits for 2010 contributions?
Single filers: up to $105,000
Married couples filing jointly: up to $167,000
What is the contribution limit for 2010?
$5,000 per year (subtracting any Traditional IRA contributions)
What is the deadline for contributions?
Tax return deadline for the year
When can earnings be withdrawn tax free?
If both 5 year and qualified-reason tests are met
When does the 10% early distribution tax penalty apply?
Before age 59 ½, unless deceased, disabled, taking pre 59 ½ periodic payments, paying qualified medical expenses, health insurance premiums for unemployed, first-home purchase, or educational expenses. Paying this tax at the time of distribution is optional.
When must distributions begin?
At owner's death
Education IRA What are the age restrictions for contributions?
Designated beneficiary must be under 18
What are the income limits for contributions?
Individual filers: under $110,000 Married couples filing jointly: under $160,000
What is the contribution limit?
$500 per year (in addition to traditional/Roth IRA contributions)
What is the deadline for contributions?
December 31 of the year
When can earnings be withdrawn tax free?
Before age 30 if used to pay higher-education expenses for designated beneficiary
When does the 10% early distribution tax penalty apply?
If not used for designated beneficiary's education, unless designated beneficiary is disabled or deceased, or to the extent of the scholarship
When must distributions begin?
When designated beneficiary reaches age 30
*APY (Annual Percentage Yield)
°APR (Annual Percentage Rates)


