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ROTH IRAs |
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Roth IRAs
The Roth IRA differs from Traditional
IRAs in that funds contributed are not
tax deductible. These contributions
consist of after-tax dollars. When funds
are withdrawn from a Roth IRA, interest
earned is tax-exempt as long as the Roth
IRA holder meets certain criteria at the
time of withdrawal.
• Investors would
benefit from a Roth IRA if they:
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• Expect to be
in the same or an even higher tax bracket at
retirement age, |
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• Already
contribute to a 401k or other company
plan, or
• Want to continue to contribute to an
IRA Plan after age 70½.
•
Eligibility to
contribute to a Roth IRA is based on
your Modified Adjusted Gross Income
(MAGI). You may be actively contributing
to a 401(k) Plan and also be eligible to
contribute to a Roth IRA.
• Contributions
can be made up until your tax-filing
deadline, generally April 15, for a
prior year contribution.
• Eligible
individuals may contribute the lesser of
the annual contribution limit or 100% of
their earned income to a Roth IRA.
• Individuals over
age 70 ½ may continue to make
contributions to a Roth IRA as long as
they have earned income.
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IRA Department |
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Stephanie Servary |
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Phone #:504-832-5615 |
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Fax#: 504-832-3235 |
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e-mail: |
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sservary@metairiebank.com |
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Manager |
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Robbin Hardee |
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Phone#: 504-832-5671 |
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Fax#: 504-832-3235 |
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e-mail: |
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rhardee@metairiebank.com |
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•
You may contribute to both a Traditional
and a Roth IRA for a combined total up
to the annual contribution limit.
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Year |
Annual Contribution
Limit |
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2006-2007 |
$4,000 |
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2008 |
$5,000 |
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2009 and after |
$5,000 plus cost of living
adjustments |
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IRA Eligibility MAGI Thresholds -
Contribution Table
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If you are: |
2007 Modified Adjusted
Gross Income (MAGI) is |
2008 Modified Adjusted
Gross Income (MAGI) is |
Then |
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Single Individual |
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Less than $52,000
● $52,000 to $62,000
● Greater than $62,000 |
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Less than $53,000
● $53,000 to $63,000
● Greater than $63,000 |
● Contribution amount can be up
to annual limit
● Contribution amount decreases
as income increases
● Customer is not eligible
to contribute |
Married Individual
Filing Jointly |
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Less than $83,000
● $83,000 to $103,000
● Greater than $103,000 |
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Less than $85,000
● $83,000 to $105,000
● Greater than $105,000 |
● Contribution amount can be up
to annual limit
● Contribution amount decreases
as income increases
● Customer is not eligible
to contribute |
Married, Joint
(non active participant but
spouse is) |
● Less than $156,000
● $156,000 to $166,000
● Greater than $166,000 |
● Less than $159,000
● $159,000 to $169,000
● Greater than $169,000 |
● Contribution amount can be up
to annual limit
● Contribution amount decreases
as income increases
● Customer is not eligible
to contribute |
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Married Filing Separate |
● N/A
● < $10,000
● >=$10,000 |
● N/A
● < $10,000
● >= $10,000 |
● Contribution amount can be up to
annual limit
● Contribution amount decreases
as income increases
● Customer is not eligible
to contribute |
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Individuals who reach age 50 or older
before the end of the taxable year may
be eligible to contribute an additional
$1,000 to a Roth IRA as a "catch-up"
contribution.
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Participants in a Roth IRA Plan do not
have a required minimum distribution at
age 70½. You can continue to make
contributions after the age of 70 ½ as
long as you have earned income.
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In order to avoid taxes and IRS
penalties on a withdrawal from a Roth
IRA, you must meet the following
criteria:
• Hold the
account for at least five years and one
of the following:
• Age 59 ½
• Purchasing a first home
• Disabled
• Death of participant
If you do
not meet the above criteria, the
withdrawal is considered
“non-qualified.” Any portion of the
non-qualified withdrawal that represents
earnings will be included as income for
tax purposes. In addition, the earnings
included as part of a non-qualified
withdrawal will be subject to a 10% IRS
early distribution penalty.
©2009 Metairie Bank. This bank complies with Section 326 of the "USA Patriot Act" that
mandates we verify certain information about you while processing your account application.
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