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Which
IRA is right for you?
TRADITIONAL
IRA
-
Contributions are
generally tax deductible
-
Contributions
and earnings are tax deferred
-
Maximum
contribution for 2010 is $5,000*
ROTH
IRA
-
All
earnings are
non-taxable
-
No
required distribution
-
No
age limits for contributions
-
Higher
income levels for qualifying contributions
*Notes
for both Traditional and Roth IRA’s
-
For those age 50 and over, you can make an additional
$1,000 "catch-up" contribution for a total annual contribution of
$6,000.
-
The “Saver’s Tax Credit” makes it easier for you to
contribute to your IRA.
This law allows credit on the amount of income tax you
owe the IRS – Save up to 50% of your contribution!
(Early withdrawal may result in a penalty. Not
intended as tax advice. Please consult a tax professional.)
Interest rates accurate as of 7-29-10
| |
Interest Rate |
APY* |
IRA
($20,000 AND OVER) |
1.89% |
1.90% |
IRA
(UNDER $20,000) |
1.74% |
1.75% |
*
Annual Percentage Yield
|
