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| Available for those desiring to save after-tax dollars and enjoy the rewards of paying no federal income tax on the earnings in the plan. |
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As long as you have earned income, you can establish and contribute to a Roth IRA even after age 70 1/2. While contributions are not tax deductible, contributions and earnings can be withdrawn tax-free, and unlike traditional IRAs, you are not required to begin taking required minimum distributions after reaching age 70 1/2. By converting your traditional IRA to a Roth IRA, you can enjoy tax-free withdrawals. However, the amount you convert is subject to income tax now.
Making-Up For Lost Time
Catch-up contributions—For taxable years beginning in 2002, individuals who have reached age 50 by the end of the year will be able to make additional catch-up contributions of $500 per year to their traditional or Roth IRA. For taxable years beginning in 2006, the additional catchup amount increases to $1,000.
Contact your banker today to learn more about today’s IRA!
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