Traditional IRA

Who can contribute?

• Anyone under age 70 1/2 who has income from compensation (or who is filing jointly with a spouse who earns compensation).
• Anyone who has received a distribution from a qualified retirement plan and decides to roll over the proceeds of the plan into an IRA.

How much can I contribute?

• $5k for 2008-2010
• $6k for 2009-2010 for owners age 50 and older

Who can make deductible contributions?

Fully-deductible contributions:

• Single individuals not active in employer retirement plans
• Single individuals active in employer retirement plans with MAGI of less than:
  • $50k (2005-2010)
• Married couples with neither spouse active in an employer retirement plan
• Married individuals active in employer retirement plans with joint tax returns showing MAGI of less than:
  • $80k (2007-2010)
• Married individuals not active in employer retirement plans with spouses who are, as long as MAGI is $150k or less

What are the tax advantages?

• Earnings grow tax-deferred until withdrawn
• Contributions may be tax-deductible

When can I withdraw without restrictions?

Withdraw penalty-free for any of the following reasons:

• Qualified higher-education expenses
• First time home purchase
• Age 59 1/2
• Qualifying medical expenses exceeding 7.5% of adjusted gross income
• Payment to beneficiaries upon owner's death
• Payment of health insurance premiums while unemployed for 12 weeks or longer