Roth IRA

Roth IRA accounts are available to couples with a modified adjusted gross income (MAGI) of up to $166,000 and singles up to $105,000. Contributions are phased out between $166,000 and $176,000 for couples and $105,000 and $120,000 for singles. Maximum annual contribution for 2009 is $5,000 for singles and $10,000 for couples.

• Contributions are non-deductible
• No minimum distributions required at age 70 1/2, allowing account to keep growing.
• Catch-up contributions for 50+ taxpayers - $1000 for 2009 making maximum contribution $6,000 for singles, $12,000 for couples
• Contributions may be withdrawn tax and penalty free at any time.
• Tax-free withdrawals of earnings are permitted after age 59 1/2 if account has been open for 5 consecutive tax years.