Roth IRA Plan Description

Non Tax-Deductable IRA

• Retirement benefits and qualified withdrawals are exempt from taxes.
• Contributions to a Roth IRA are not tax-deductible.
• Contributions can be continued into the Roth IRA after age 70.5.
• No excise tax penalty for withdrawals with the following restrictions.  Withdrawals can be made when:
• Buying a first home for individual or family member.
• Retirement after age 59.5
• Long-term unemployment of individual
• Death or disability of individual (Minimum distribution rules do not apply during the lifetime of individual, but do apply after death.)
• Under age 59.5, individual can withdraw contributions on a tax-free, contribution-first basis.
• Five years has passed since the first contributions.
• Eligibility begins to phase out for annual income -- $95,000 for individuals, $150,000 for couples.
• An individual can roll over existing IRA funds into a Roth IRA without the 10% penalty for taxpayers with an adjusted gross income of less than $100,000.  The rollover is subject to tax, but isn't subject to the 10% premature distribution tax.  Income from rollover before 1999 is spread over four tax years beginning with the distribution year.