|
|
CHANGES TO THE TRADITIONAL IRA
Contribution may be made for previous year thru April 15th or the day Federal taxes are due and always for the current year
Available to anyone under the age of 70 ½ with compensation.
Deductibility limits increased: by the year 2007, individuals with income up to $60,000.00 and married couples with joint income up to $100,000.00 will be eligible for at least a partial IRA deduction.
Persons with no pension coverage whose spouses are covered by a qualified retirement plan will be able to deduct their IRA contributions, as long as income is under $150,000.00.
New penalty-free withdrawals are available for owners using the funds for first-time home purchase or educational expenses.
The 15% taxes on excess accumulations and excess distributions have been eliminated.
TRADITIONAL IRAS:
EXCEPTIONS TO THE 10% TAX ON EARLY DISTRIBUTIONS
(as of 1-1-1998)
Owner is deceased -- funds are paid to the beneficiary.
Owner is age 59 ½.
Owner is disabled.
Owner is receiving substantially equal payments over his or her life expectancy (pre 59 ½ periodic payments).
Owner has qualified unreimbursed medical expenses greater then 7.5% of adjusted gross income.
Owner is paying qualified health insurance premiums while unemployed for 12 weeks or longer.
Owner has qualified first-time home purchased expenses.
Owner has qualified higher education expenses.
Owner rolled over traditional IRA funds to a Roth IRA.
|
|
