Page 82 - Book10E

YEAR
Contribution limit (under age 50) Contribution limit (if over age 50)
2012
$11,500 $ 2,500
$14,000
2013
$12,000 $ 2,500
$14,500
* You must establish a Simple IRA by October 1
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Keep in mind that the tax rules change all the time so have your finan- cial advisor help you stay current on IRA standards. Visit your local credit union or bank for information on the amount of contribution you are eligible to make.
Roth IRA
Established in 1997, this plan can be started anytime during any year you earn taxable income. Money can be deposited up to certain annual limits and is not tax deferrable. The earnings, however, are tax free and you pay no taxes on withdrawals provided the withdrawals take place five years or more after the Roth IRA is established and after you turn 59 1/2. The Roth IRA also differs from a Traditional IRA in that you are allowed to continue contributing after age 70 1/2 and there are no pre-death minimum withdrawals. If you contribute to a Traditional IRA and a Roth IRA, there are limits to how much you can contribute to each. Check with your financial advisor for information.
SIMPLE IRA
Savings Match Plan for Employees is an IRA plan for employees of small companies with 100 or fewer employees who earn at least $5,000 per year. You may contribute up to certain annual limits and your employer will make matching contributions to certain levels much like
Simple IRA Contributions
Individual Retirement Accounts