Contributions

• Earned Income
• No Age Restrictions.
• Up to $4,000 or the total earned income for 2006 - 2007, whichever is less.
  Up to $5,000 or the total earned income for 2008, whichever is less.
• Modified Adjusted Gross Income can not exceed certain limits.
• Higher limit if age 50 or older.

Exception: Spousal Contributions. A compensated spouse can make a contribution to an IRA for a non compensated spouse. The total that can be contributed to his/her own IRA, and the spousal IRA is limited to the total of the compensated spouse's earned income or $8,000, whichever is less.

• Contributions for each year can be made until the tax filing deadline in the following year (not including extensions).

Transfers

• Many IRA owners can convert their traditional IRAs to Roth IRAs, and take advantage of the possible tax- and penalty- free benefits not available in a traditional IRA. The key for taxpayers is determining whether or not they are eligible and whether or not a conversion is beneficial. To find out, contact your tax advisor.

Withdrawals

• Must be reported on the members tax return.
• No minimum distribution required.
• Unlike the traditional IRA, contributions to a Roth IRA are never tax deductible.  However, Roth IRA earnings are tax-free (that is, free from federal income tax) for account owners who meet a 5 year holding period and withdrawal the funds for a qualified reason.

Qualified Distribution Reasons:

• Normal Distribution - Age 59 1/2; or older.
• Distributions made to a beneficiary upon the IRA owner's death.
• Distributions attributable to the individual's being disabled.
• Qualified first time home buyer distributions.

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