Contributions for 2007 are limited to $4,000 or 100% of earned income, whichever is less.
People age 50 or over can contribute up to $5,000.
Contributions for 2007 are limited to $4,000 or 100% of earned income, whichever is less.
People age 50 or over can contribute up to $5,000.
You can make contributions up to the tax year in which you will turn 70.5. In general, earned income is required.
Generally, you can make contributions as long as you have earned income.
Distributions are taxed as ordinary income after age 59.5.
Contributions are fully deductible if you were not covered by an employer's retirement plan.
In the case of a married couple, contributions are fully deductible if neither person is covered by an employer's retirement plan.
If you as a single filer, or in the case of a married couple, you or your spouse, are covered by an employer's retirement plan, your deduction begins to decrease when your income rises above a certain amount. If your income is above a certain threshold you are not eligible for a deduction. *
Distributions are tax-free at retirement. Contributions can be withdrawn penalty-free at any time.
Earnings can be withdrawn after five years for qualified events.
Contributions are not tax deductible and your eligibility to contribute the maximum is limited by income. *
Tax year contributions must be postmarked or deposited by the tax return filing deadline -- usually April 15.
Tax year contributions must be postmarked or deposited by the tax return filing deadline -- usually April 15.
You must begin taking distributions by April 1 following the year you turn 70.5
No mandatory distributions
* If you are a participant in an employer's retirement plan and single, your traditional IRA contribution is fully deductible if your income is $52,000 or less. Deductibility phases out with an income between $52,000 and $62,000.
For married joint filers, the contributions to a traditional IRA are fully deductible with a combined income of $83,000 or less. Deductibility phases out with an income between $83,000 and $103,000.
Further, in the case of married couple where one spouse is covered by an employer's retirement plan and the other is not, contributions are fully deductible with a combined income of $156,000 or less. Deductibility is phased out with income between $156,000 and $166,000.
* As a single filer, if you make $99,000 or less, you are eligible for the maximum contribution. Eligibility to contribute to a Roth phases out with an income between $99,000 and $114,000.
Married joint filers are eligible for the maximum contribution with an income of $156,000 or less. Eligibility to contribute to a Roth phases out with a combined income of $156,000 and $166,000.
