Indiana United Methodist Loan Fund    

Indiana United Methodist Loan Fund

 

Traditional IRA vs. Roth IRA
  Traditional Roth
Maximum Contribution $4,000 per Person per Year $4,000 per Person per Year
Income Limitations None Singles - $110,000
Married - $160,000
Federal Tax Deductibility Sometimes None
Federal Taxation at Distribution As Regular Income None if After Age 59½ and Funds in IRA More than Five Years*
Federal Taxation on Earnings Deferred Until Distribution None if After Age 59½ and Funds in IRA More than Five Years
Age 70½ Rules Mandatory Distributions.
No Further Contributions Allowed
None
Contribution Deadline April 15 of Year Following Contribution Year April 15 of Year Following Contribution Year
Transfers Directly From Any Qualified Retirement Plan or IRA - No Taxes or IRS Penalties Due Directly from any Roth Qualified Retirement Plan or Roth IRA.
Early Distributions 10% Federal Tax Penalty for Unqualified Distributions Distributions of Principal OK; 10% Federal Tax Penalty for Unqualified Distributions of Interest

*Note: Distribution of principal contributions may be made at any time from Roth IRAs without penalty.
*Note: Traditional, SEP and Simple IRAs can be converted to Roth IRAs if AGI is under $100,000. Taxes due on pre-tax dollars in year of conversion.

 
 
Updated 09/27/2007. Questions? Comments? Contact the webmaster
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