|
|
|
ROTH IRAs |
|
|
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are withdrawn from a Roth IRA, interest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:
|
|
|
|
• Expect to be
in the same or an even higher tax bracket at
retirement age, |
|
• 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.
|
|
IRA Department |
|
Stephanie Servary |
|
Phone #:504-832-5615 |
|
Fax#: 504-832-3235 |
|
e-mail: |
|
sservary@metairiebank.com |
|
|
|
Manager |
|
Robbin Hardee |
|
Phone#: 504-832-5671 |
|
Fax#: 504-832-3235 |
|
e-mail: |
|
rhardee@metairiebank.com |
|
|
•
You may contribute to both a Traditional
and a Roth IRA for a combined total up
to the annual contribution limit.
|
Year |
Annual Contribution
Limit |
|
2006-2007 |
$4,000 |
|
2008 |
$5,000 |
|
2009 and after |
$5,000 plus cost of living
adjustments |
|
IRA Eligibility MAGI Thresholds -
Contribution Table
|
If you are: |
2007 Modified Adjusted
Gross Income (MAGI) is |
2008 Modified Adjusted
Gross Income (MAGI) is |
Then |
|
Single Individual |
●
Less than $52,000
● $52,000 to $62,000
● Greater than $62,000 |
●
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 |
●
Less than $83,000
● $83,000 to $103,000
● Greater than $103,000 |
●
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 |
|
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 |
•
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.
•
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.
•
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.
©2011 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.
Terms of Use Privacy Policy
|
|
|
