THE ROTH IRA

The Roth IRA became available January 1, 1998.  Here is some basic information on Roth IRA's:

• Contributions are made from earned income that has already been taxed, therefore are not tax deductible.
• Withdrawls of contributed amounts are federal income tax free, and the earnings may be also.
• Total contributions allowed for 2008* are $5000 for those 49 and younger and $6000 for those over 50.
• Withdrawls after age 59 1/2 are tax free, and there are never required withdrawls.
• There are penalties for early withdrawls (before age 59 1/2)

*Starting in 2009, contribution limits will increase in $500 increments based on inflation.