Topics

Roth IRA

• What is a Roth IRA?
  A Roth IRA is a special "after-tax" IRA that was established under the Taxpayer Relief Act of 1997.

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• Who is eligible to set up a Roth IRA?
  There are two ways you can contribute: either by regular contributions or rollovers from another Roth or a Traditional IRA. Unlike Traditional IRAs, you may contribute past age 70 1/2 as long as you are receiving compensation.

  Single filers with a maximum earned income of $95,000 and married filers filing jointly with a maximum earned income of $150,000 can contribute up to $3,000. If a single filer has earned income between 95,000 and $110,000 and a joint filer has an earned income between $150,000 and $160,000, they may contribute an amount less than $2,000.

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• What are the contribution limits?
  Generally, $3,000 is the maximum amount, which may be contributed annually to all Roth IRAs maintained by an individual in any taxable year. This limit may be less when the individual's earnings are below $3,000. The $3,000 annual limit does not apply to a rollover or a direct transfer into a Roth IRA.

  Beginning in 2002, contractholders over age 50 may be eligible to make "catch-up" contributions.

  Year	Contribution Limit for all IRAs
  2002 - 2004	$3,000
  2005 - 2007	$4,000
  2008 and later	$5,000 (indexed in $500 increments)

  You cannot make conversion contributions if your adjusted gross income is more than $100,000 in any year.

  You should contact your CPA/Tax Advisor for the specific amount that you are allowed to contribute and to find out about the special tax rules concerning converting Traditional IRAs to Roth IRAs.

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• When must the contribution be made?
  The contribution for a given tax year must be made by April 15th of the following year, excluding extensions. A conversion must take place by 12/31 (year-end).

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• Is the contribution deductible by the taxpayer?
  No.

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• How do I open a Roth?
  To open a Roth you must see your Financial Professional and complete an application.

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• Can I convert to a Roth?
  You may convert your Traditional IRA or QP-IRA to a Roth IRA. This can either be a full or partial conversion. The conversion is taxable in the year in which the conversion takes place.

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• Can I rollover a TSA into a Roth IRA?
  No, you must rollover a TSA into a Traditional IRA first, if you are eligible. Then you would convert the Traditional IRA into a Roth IRA. Check with your Financial Professional to see if you are eligible to roll your TSA into a Traditional IRA and to complete all application and enrollment forms.

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