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Roth IRA
While contributions to a Roth IRA are not tax deductible, withdrawals
are tax free if certain conditions are met. For 2007, the maximum contribution is $4,000 ($5,000 is you are over age 50).
Withdrawals from a Roth IRA are tax and penalty free if:
- The account owner is at least 59 ½ years old and the account has been held at least five years.
Withdrawals from a Roth IRA are also tax and penalty free under these
circumstances:
- The distribution is due to total disability and the account has been held at least five years.
- The distribution is for a qualified first-time home purchase and the account has been held at least five years.
- The distribution is to a beneficiary after the owner's death and the account has been held at least five years.
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Unlike the Traditional IRA there is no requirement that withdrawals be started at age 70 ½.
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Eligibility to open a Roth IRA is based on income:
| Filing Status |
Modified Adjusted Gross Income |
Eligibility |
| Single |
$99,000 or less |
Full contribution allowed. |
| $99,000 - $113,999 |
Partial contribution. |
| $114,000+ |
No contribution allowed. |
| Married Filing Jointly |
$156,000k or less |
Full contribution allowed. |
| $156,000 - $165,999 |
Partial contribution. |
| $166,000+ |
No contribution. |
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*Erie Family Life products are not available in all states.
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