IRA’s

An IRA is an Individual Retirement Account in which you make contributions toward your future financial security. The amount you put in is flexible, so you may contribute whenever and in whatever amounts you so desire per IRS guidelines. The two most important features for establishing an IRA are:
·       Tax-deductible contributions

·       Tax-deferred earnings

Roth IRA
With the passage of the Taxpayer Relief Act of 1997, a new type of IRA called the Roth IRA was created. This program is designed to help people save for retirement. Contributions to a Roth IRA are not tax deductible like the traditional IRAs. However, qualified distributions from a Roth IRA are received TAX FREE, and this is why they are very popular.

Traditional & Roth IRA’s
See chart below for maximum annual contributions*. The law further allows eligible workers 50 or older to contribute additional money every year; this is called a catch-up provision.
The law also allows eligible workers 50 or older to contribute additional money every year; this is called a catch-up provision.

Tax Year
IRA Contrabution
Age 50+
2012
$5,000
$1,000


401(k), 403(b) and SARSEPs
See chart below for maximum annual contributions*.  The law further allows eligible workers 50 or older to contribute additional money every year; this is called a catch-up provision.
The law also allows eligible workers 50 or older to contribute additional money every year; this is called a catch-up provision.

Tax Year
Employee Contribution Limit
Age 50+
2012
$17,000
$22,500


Simple IRAs
See chart below for maximum annual contributions*. The law further allows eligible workers 50 or older to contribute additional money every year; this is called a catch-up provision.
The law also allows eligible workers 50 or older to contribute additional money every year; this is called a catch-up provision.

Tax Year
Employee Contribution Limit
Age 50+
2012
$11,500
$14,000

 

* 2012 Tax Reference Sheet