What is a Roth or Conversion IRA?
A Roth Individual Retirement Arrangement (IRA) is one of the more recent investment options available to help individuals prepare for retirement. To open and contribute to a Roth IRA, customers must meet certain eligibility requirements set by the IRS. For tax year 2008, customers with earned income may contribute up to $5,000 per year (or 100% of their earned income, whichever is less) to their IRAs, and individuals age 50 or older may contribute up to $6,000 annually. For tax year 2009, customers with earned income may contribute up to $5,000 per year (or 100% of their earned income, whichever is less) to their IRAs, and individuals age 50 or older may contribute up to $6,000 annually. Contributions are made on an after-tax basis, and earnings generated by a Roth IRA may not be subject to taxes upon a qualified distribution. Note: Contribution limits indicate the total amount a taxpayer may annually contribute to their combined IRA accounts. For specific or tax-related questions abou
