|
2006
|
Traditional
IRA
|
Roth
IRA
|
Traditional
Non-Deductible
IRA |
|
Contribution
allowed if you or spouse have earned income. The limit may be
put in one IRA type or spread among two or more types. |
$4,000
($5,000 if age 50 or older)
|
$4,000
($5,000 if age 50 or older)
|
$4,000
($5,000 if age 50 or older)
|
|
Contribution
due date
|
April
15th
|
April
15th
|
April
15th
|
|
At
what age are you prohibited from making additional contributions?
|
At
age 70 ½ by yearend
|
No
age limit
|
At
age 70 ½ by yearend
|
|
When
must minimum distributions begin?
|
Must begin by April 1, following the year when
participant turns age 70 ½
|
Required
only after the death of the participant.
|
Must begin by April 1, following the year when participant turns age
70 ½
|
|
Contribution
phase-out if you are active in your employer’s retirement plan |
Single,HOH
$50-60k
Married
$75-85k
|
N/A |
N/A
|
|
Phase-out
if you’re not an active participant but your spouse is |
$150-160k
|
N/A |
N/A
|
|
Phase-out
if you (and spouse) have too much income
|
N/A
|
Single
$95k-110k Married $150-160k
|
N/A
|
|
Tax
treatment of withdrawals
when allowed by tax law |
All
funds taxed as ordinary income |
Tax
Free
|
Withdrawal
of contributions is tax-free.
Earnings are ordinary income. Must file Form 8606 to
allocate. |
|
When
can withdrawals be made without penalty?
|
The
year you reach age 59 ½
|
The
year you reach age 59 ½ if the funds have been in the acct. for at
least 5 years
|
The
year you reach age 59 ½
|
|
Tax
free withdrawal for home buyer who has not owned a home for 2 yrs
|
Yes,
up to $10,000
|
Yes,
up to $10,000
|
Yes,
up to $10,000
|
|
Caution -
Content on this page is general in nature. More specific rules
and limitations may apply to your situation. Always seek the
advice of a tax professional before making important financial
decisions. |