- Individuals with earned
income can contribute 100% of income up to $3,000 per tax year if
under the age of 50, as long as your Modified Adjusted Gross
Income is within prescribed limits
- Individuals age 50 or older with earned
income can contribute 100% of income up to $3,500 per tax year, as
long as your Modified Adjusted Gross Income is within prescribed limits
- Married couples filing
jointly with only one spouse receiving earned income may still contribute
to each spouse's IRA up to the usual contribution limit noted above,
as long as your Modified Adjusted Gross Income is within prescribed
limits
- No maximum age limitation
for making contributions to a ROTH IRA
- With the market rate
variable interest option, you can open an account with just $5.00
- Flexibility of term
from 12 months to 30 months with a $500 fixed rate IRA
- Rate guaranteed for
the term of the fixed rate IRA
- Interest compounded
daily
- FDIC insured up to
$100,000, separately from other non-IRA deposits
- Can rollover funds
from a Qualified Plan such as a 401(k), profit/pension plan, etc.,
but funds will be taxable at time of rollover
- Withdrawals can be
made without penalty for medical expenses in excess of 7.5%
of your adjusted gross income, or to pay health insurance while
you are unemployed, or to pay qualified education expenses.
Under certain conditions withdrawals may be tax-free after
the age of 59 ½, or due to death, or permanent disability,
or to pay certain costs by "first time home buyer" for acquiring
principal residence
- Contributions can be
made any time during the calendar tax year or no later than April
15th of the following year
- Contributions are not
tax deductible
- Possible early withdrawal
penalty
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