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Roth IRAFeatures
- Earnings on account are tax-deferred
- Contributions are not tax deductible
- IRA owners are not required to begin distributions at age 70 ½
Contributions
- You must have earned income to make a contribution
- In general, contributions may be made up to 100% of earned income or the amount listed in the following table.
- Some customers’ contributions may be limited according to their MAGI1
- Contributions for the previous tax year may be made up to April 15th of the current year
|
Tax Year |
Standard Limit |
Additional Catch-Up Contribution Limit |
Total Contribution Limit for Age 50 or Over |
| 2002 - 2004 |
$3,000 |
$500 |
$3,500 |
| 2005 |
$4,000 |
$500 |
$4,500 |
| 2006 – 2007 |
$4,000 |
$1,000 |
$5,000 |
| 2008 |
$5,000 |
$1,000 |
$6,000 |
| 2009 and after |
$5,000 + COLA2 |
$1,000 |
$5,000 + COLA2 + $1,000 |
Rollovers, Transfers and Conversions
- Funds from Roth IRAs at other institutions may be transferred or rolled over into a Roth IRA at First Federal Savings Bank
- Traditional IRA funds may be converted to a Roth IRA. This transaction may be taxable1
Distributions
- Customers reaching age 70 ½ are not required to take distributions.
- Qualified distributions from a Roth IRA may be tax and/or penalty free.
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