Roth IRAs are special savings plans that help you accumulate funds for retirement. Contributions are not deductible but all withdrawals, including earnings, are tax-free if the account has been open for at least 5 years and the account holder is age 59 1/2 or older.

Contribution Information

• 2009 Limits: Up to $5,000 per year if you are under the age of 50; Up to $6,000 per year if you are age 50 or older. 
• 2010 Limits: Up to $5,000 per year if you are under the age of 50; Up to $6,000 per year if you are age 50 or older. 
• Contributes can be made as long as MAGI (modified adjusted gross income) does not exceed state limitations.

Tax Information

Contributions for a Roth IRA are not tax-deductible.; however, regular contributions can be withdrawn tax and penalty-free at any time.   If the account is active for five years and funds are withdrawn for a qualified reason, you do not have to pay taxes on your dividend earnings.

IRA information not intended as tax advice.  Please consult a tax professional.