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| TRADITIONAL IRAs |
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A Traditional IRA may be opened by any individual who has earned income and wants to defer or eliminate the payment of taxes on funds set aside for retirement. You will be taxed on these earnings when you start making withdrawals, after 59-1/2 years of age or when you retire, and your tax bracket may be lower. Meanwhile, you can take advantage of the tax deferral that will increase your earnings. Participant contributions require certain eligibility rules.
Contributions
Individuals may contribute a maximum of $3,000 for years 2003 and 2004
Distributions
Participants may start taking distributions as early as 59-1/2 years of age without a federal tax penalty. You can wait to start your distributions, but you must start by age 70-1/2.
Withdrawals
Except in certain situations, withdrawals from an IRA may be subject to federal income taxes plus a tax penalty.
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