2009 Roth IRA News
Our clients, from Boston and all over Massachusetts, ask us about IRAs, Roth IRAs and the new rules about conversion. First, an IRA is an Individual Retirement Account in which if you have earned income, you may contribute up to $5,000 in 2009; however, if you are 50 or over, you may add an additional $1,000. You must have earned income of the amount you are contributing. The good news is that you can deduct from your taxable income the amount you contribute. The bad news is that at the time of withdrawal, you must declare the amount you withdraw as income. Further, when you reach age 70.5, you must begin withdrawals (and pay the taxes) per an IRS schedule; and any monies left when you die are taxable to your estate.
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