Roth
IRA Basics
A couple can Invest up to $10,000 per couple annually
if one spouse has $10,000 in earned income. A single person can invest
up to $5,000 annually if they have $5,000 in earned income.
Invest
up to $12,000/couple annually if one spouse has $12,000 in earned
income and the married couple are both 50 years of age. A single person
can invest up to $6,000 annually if they are at least 50 years of
age and have $6,000 in earned income.
After five years, you'll pay no Federal and Kanasas income
tax on earnings withdrawn after age 59 1/2.
You may withdraw without penalty or Federal or Kansas
Income Tax, up to $10,000 after (5) years before age 59 1/2, for down
payment on "First Time Home Purchase."
You may withdraw without penalty before age 59 1/2 to
pay for higher education.
You are eligible to invest in a Federal and Kansas Income
Tax-Free Roth IRA if your annual income is under $156,000 (couple)
or $99,000 (single).
No mandatory withdrawals at any age, so you can save as
long as you like.
Rollover your existing Traditional IRA (without penalty)
to a Roth IRA, if your Federal Adjusted Gross Income is less than
$100,000.
You may contribue to a ROTH IRA past age 70.5, up to $12,000
per couple annually if one spouse has $12,000 in earned income.
You
may contribute to a ROTH IRA past age 70.5 up to $6,000 for a single
person, if they have at least $6,000 in Earned Income.
The Roth IRA
also provides a way to pass a large amount of money, without probate,
at your death. With a traditional IRA, you must start making withdrawals
after you reach age 70 1/2.
But - a Roth
IRA has NO mandatory withdrawals. That means you can let the account
keep accumulating income, Federal and Kansas tax-free, until your
death, when it will pass to the person you've named.
For more detailed
information about the recent tax legislation and how Roth IRA's can
benefit you , please consult your tax advisor.
Thank you for
visiting my Web page. If you have any questions, please don't hesitate
to contact our office. We would be glad to serve you in any way
that we can.
Copyright
2006 - Buellesfeld Financial Services, Inc.
Registered Investment Advisor
J. P. Buellesfeld, President
221 West Harvey, Suite 108,
U. S. Post Office Building
Wellington, Kansas 67152-3843
Phone: (620) 326-7551; 326-6702
Cell Phone: 316-648-7551
E-Fax: 413-740-5896
E-mail: jpb@sutv.com
Last updated on 29 Oct 2007 - Sherry Kline, webdesign
