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    Retirement Account
    Traditional IRA and Roth IRA
    The chart below describes the differences between a traditional IRA and a Roth IRA. You may contribute simultaneously to a traditional IRA and a Roth IRA as long as the total amount contributed does not exceed the maximum allowable contribution. If you want to open an IRA account or have any questions related to an IRA, please call us at 1-888-882-8856 or 1-415-901-0322.
    Traditional IRA Roth IRA
    Eligibility Working taxpayer under age 70 1/2. Working taxpayer at any age with an annual gross income below $116,000 if single or $169,000 if married filing jointly.
    Maximum Annual Contribution
    1. Single, under age 50: $5,000
    2. Single, age 50 and above: $6,000
    3. Married, under age 50 (both): $10,000
    4. Married, age 50 and above (both): $12,000
    5. Married, age 50 and above (one): $11,000
    1. Single, under age 50: $5,000
    2. Single, age 50 and above: $6,000
    3. Married, under age 50 (both): $10,000
    4. Married, age 50 and older (both): $12,000
    5. Married, age 50 and above (one): $11,000
    Contribution Deadline April 18, 2011 for 2010 April 18, 2011 for 2010
    Tax Advantage
    1. Contribution: tax deductible
    2. Earnings: taxed deferred the time you withdraw
    3. Withdrawals: taxable
    1. Contribution: not tax deductible
    2. Earnings: may be tax-free
    3. Withdrawals: contribution amount tax free
    Early Withdraw Penalty 10% penalty if earnings are withdrawn before age 59 1/2. 10% penalty if earnings are withdrawn before age 59 1/2 or before the account has been open for five years.
    Penalty Exemption Higher education expenses, first time home purchase, death or disability, certain medical expenses. Higher education expenses, first-time home purchase, death or disability, certain medical expenses.


    Tax Deductibility of IRA Contributions
    If neither you nor your spouse participated in an employer-sponsored retirement plan such as a 401k, 403b or pension plan, your contributions are fully tax deductible. If you or your spouse participates in an employer-sponsored retirement plan, see the chart below to find the maximum amount of your deduction.
    2010 annual IRA contribution limits*
      Younger than 50 50 or older
    Roth IRA $5,000 $6,000
    Traditional IRA $5,000 $6,000
    Combination of both Roth and Traditional $5,000 $6,000
    * Source: Internal Revenue Service. Also see IRS Publication for more information. Tax issues involving IRAs can be complex. Please consult your tax or legal adviser before making any decisions.