Roth IRA

A Roth IRA is a tax-advantaged retirement account that allows:

• Contributions up to $5,000 annually. The amount increases to $6,000 for investors 50 years old or older.*
  
• Converting a traditional IRA into a Roth IRA by paying income taxes on the amount transferred.
  
• Income limits to make the maximum contribution*
  
  • Married filing jointly -- adjusted gross income at or below $156,000;
    
  • Single filers -- adjusted gross income at or below $99,000.
    
• Earnings to grow tax-free.
  
• Investors to make contributions with after-tax dollars, and the qualified distributions out of the account are tax-free.
  
• Investors to receive tax-free distributions if they are made after age 59½ and the account has been open for five years. ( Other restrictions apply.***)
  
• Tax and penalty-free withdrawals to be taken before age 59½ for the following reasons:
  
  • First-time purchase of a home (up to $10,000);
    
  • Disability as defined by Internal Revenue Code;
    
  • Death of the IRA accountholder.
    

To find out more, contact:

Karen DiBrita
IRA Specialist, NEFCU
(516)-714-2049
dibritak@nassaued.org

Considering other IRA investments or need help with a rollover from another IRA, 401K, 403b or other qualified plan? For more information on mutual funds, stocks, or bonds, contact NEFCU Investment Services

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Tax year 2008 contributions of up to $5,000 (or $6,000 if over age 50½) for each income earner. Tax year 2009 and after the allowable contribution increases to $5,000 plus COLA with an additional $1,000 for investors 50 years old or older.
*** Penalties for early withdrawal if you're under age 59½ or have not had a Roth IRA with this institution for more than 5 years.
For further information, consult your tax advisor or the IRS website at http://www.irs.gov/