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| ROTH IRAs |
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A Roth IRA accrues interest on a tax-free basis but offers no tax deferral on the funds put aside for retirement. An individual can establish and fund a Roth in the year they have taxable compensation or self-employment income. Your earned income must be under $110,000 if you are single or $ 160,000 if married and filing jointly.
Tax Benefits
Your contributions are not tax deductible, however, you do not have to pay federal income tax on withdrawals as long as they've been in the account five years and you are over 59-1/2 years old.
Contributions
You can contribute up to $3,000 for tax years 2003 and 2004.
Distributions
There are no required distributions
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