New England Investment & Retirement Group, Inc.

Roth IRA

Plan Description

An individual retirement plan that permits tax-free earnings and distributions.

Key Features

Contributions are nondeductible, but qualified distributions are tax-free.
Permits tax-free and penalty-free withdrawals of earnings after five years. ¹
Permits tax-free and penalty-free withdrawals of contributions at any time. ²
Contributions allowed after age 70 &fraq12;.
Traditional IRAs may be converted to Roth IRAs. ²

Who Can Establish

Anyone with earned income that does not exceed the following annual adjusted gross income (AGI) limits: $110,00 for single tax filers or $160,00 for joint tax filers.
For married couples filing jointly, a nonworking spouse may also fund an IRA contribution based on the earned income of the working spouse (up to $3,000).
Anyone who is not filing a "married filing separately" tax return and has an annual AGI that does not exceed $100,000 can convert his/her Traditional IRA to a Roth IRA. ²

Annual Contributions

Up to $3,000.³ Contributions must be made by April 15 to be considered as a prior calendar year contribution.
Who contributes: individual

This information is not intended to be tax advice. Please consult your tax advisor for detailed information.

¹After an account has been open for five years, withdrawals of earnings from a Roth IRA are not subject to income tax or the 10% premature withdrawal penalty if the individual is at least 59 &fraq12;, dies, is disabled, or uses up to $10,000 of the account's earnings for a first-time home purchase.

²Subsequent withdrawals of assets previously converted from a Traditional IRA to a Roth IRA may be subject to certain withdrawal penalties.

³Contributions for both Roth and Traditional IRAs in aggregate cannot exceed $3,000 for the tax year.