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If you have multiple IRAs you need to consolidate,
our Step-up·Add-on-IRAs
are the answer. You have the one-time choice of
stepping up to a higher rate! Plus, add to your IRA
anytime throughout the term.
Allows you to defer taxes on earnings until they
are withdrawn. Some contributions are tax deductible for the tax year for which
they are made. If you have earned income and are younger than 70½ through the
entire year, this IRA would fit you. You may contribute any amount up to $5,000
annually. If you are 50 or older, you may contribute up to an additional $1000 annually as
a "catch-up" contribution. You can withdraw funds without
an IRS penalty after you reach age 59½.
For
tax year 2008, the annual "catch-up" contribution is $1000.
The big benefit here is the tax-free distribution—for
purchasing a first home (up to $10,000); anytime after age 59½; disability, and
death. Available to married couples with modified adjusted gross income of
$150,000 or less and singles with a modified adjusted gross income of $95,000 or
less. Contributions are not tax deductible. You may contribute $5,000 maximum
per year between both the Roth and the Traditional IRAs. If you are 50 or older,
you may contribute up to an additional $1000 annually as a "catch-up" contribution.
For
tax year 2008, the annual "catch-up" contribution is $1000.
Save for a child’s educational expenses: your
child, your grandchild, your niece or nephew—even your godchild—any young
person whose educational future is important to you. Similar to the Roth IRA,
but must be used specifically for a child’s
educational expenses. Contributions aren’t tax deductible—but they do grow
tax-deferred. What educational expenses qualify? Tuition, fees, books, supplies,
and equipment required for the enrollment or attendance of your designated
beneficiary.
Contributions are limited to $2,000
per year per child and only for children younger than 18. Anyone can contribute
to a child’s Coverdell Education Savings Account as long as the contributor’s income does not
exceed the limits
- Click
here
for additional IRA information from the Internal Revenue Service.
- Click here
to view Truth in Savings Information.
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