IRA/SEP/ROTH

Eligibility Annual Deposit Withdrawals Investment Options

Income Tax Rules Mandatory Distributions Transfers Rollovers

Tax Penalties Ownership Beneficiaries

Eligibility

INDIVIDUAL IRA

You may set up an Individual IRA if you have taxable income for the year and you are not age 70 ½ by the end of the calendar year. You can have a traditional IRA even if you are covered by a retirement plan at work. However, you may not be able to deduct all of your contribution if you or your spouse is covered by an employer retirement plan. If both you and your spouse have taxable income, each may have an individual IRA. See annual deposits for the specific types of income that qualify as taxable income.

SEP/IRA

SEP/IRA's (Simplified Employer Pensions/Individual Retirement Accounts) are established by employers for employees or self employed individuals. A self-employed individual is both an employee for SEP purposes and also the employer and is eligible to set up an IRA under a SEP plan.

ROTH IRA

Regardless of your age, you may set up a nondeductible ROTH IRA.

Back to Top

Annual Deposit

Single individuals may deposit 100% of taxable income not to exceed $4,000 for tax year 2007 and $5,000 for tax year 2008. If you are 50 years of age or older, you may add an additional $1,000.

Married individuals may contribute $5,000 each with an additional $1,000 for each person if they are over age 50 for tax year 2008. This includes spousal IRA contributions.

Modified AGI Limit for Traditional IRA Contributions increased

For 2007, ifyou are covered by a retirement plan at work, your deduction for contributions to a traditional IRA is reduced (phased out) if your modified adjusted gross income (AGI) is:

• More than $83,000 but less than $103,000 for a married couple filing a joint return or a qualifying widow(er),


• More than $52,000 but less than $62,000 for a single individual or head of household, or


• Less than $10,000 for a married individual filing a separate return.

For 2007, if you are not covered by a retirement plan at work, your deduction for contributions to a traditional IRA may be reduced (phased out) if you either live with your spouse at any time during 2007 or file a joint return for 2007.

If you either live with your spouse or file a joint return, and your spouse is covered by a retirement plan at work, but you are not, your deduction is phased out if your AGI is more than $156,000 but less than $166,000.

If your AGI is $166,000 or more, you cannot take a deduction for contributions to a traditional IRA.

All deposits must be made by April 15th of the year following the tax year, or by the actual filing date of your tax return for the tax year.

SEP/IRA

SEP/IRAs are structured to allow self-employed individuals to have adequate retirement plans.

Simplified Employee Pensions (SEPs)

Elective deferral (SARSEPs) limit. For 2007, the limit on elective deferrals for participants in 401(k) plans and SARSEPs (excluding SIMPLE plans) is $15,500.

Deduction limit increased. The maximum deduction for contributions to a SEP remains unchanged at 25% of the compensation paid or accrued during the year to your eligible employees participating in the plan. However, for 2007, the maximum combined deduction for a participant's elective deferrals and other SEP contributions has increased to $45,000.

Contribution limit increased. For 2007, the annual limit on the amount of employer contributions to a SEP has increased to the smaller of:

• 25% of an eligible employee's compensation, or


• $45,000.

Compensation limit. For 2007, the maximum amount of an employee's compensation you can consider when figuring SEP contributions (including elective deferrals) and the deduction for contributions has increased to $225,000.

ROTH/IRA

You can make an annual ROTH/IRA contribution up to the lesser of $2,000 or 100% of "compensation" or "earned income." If you are age fifty or older, you may add an additional $1,000. You may make deposits into a ROTH/IRA if your are single and your AGI (Adjusted Gross Income) for the year does not exceed $95,000; $150,000 if you are married and filing a joint return. If you are married and filing a separate return, your AGI income cannot exceed $10,000.

No deductions are allowed for ROTH/IRA deposit.

Withdrawals

This area is currently under construction. Please check back with us soon.

Back to Top

Investment Options

This area is currently under construction. Please check back with us soon.

Back to Top

Transfers

This area is currently under construction. Please check back with us soon.

Back to Top

Rollovers

This area is currently under construction. Please check back with us soon.

Back to Top

Income Tax Rules

This area is currently under construction. Please check back with us soon.

Back to Top

Mandatory Distributions

This area is currently under construction. Please check back with us soon.

Back to Top

Tax Penalties

This area is currently under construction. Please check back with us soon.

Back to Top

Ownership

This area is currently under construction. Please check back with us soon.

Back to Top

Beneficiaries

This area is currently under construction. Please check back with us soon.

Back to Top