IRA Comparison Table

Vermont State Employees Credit Union

Comparing Your IRA (Individual Retirement Account) Options - Quick Glance
	Who Can Contribute	How Much Can I Contribute?	What are the Tax Advantages?
Roth IRA	Anyone who has income from compensation (or who is filing jointly with a spouse who earns compensation) with the following MAGI: • Up to $95,000* for single filers • Up to $150,000 for joint filers Reduced contributions allowed for higher incomes: • Up to $110,000 for single filers • Up to $160,000 for joint filers	• $4,000 for 2005-2007 • For owners age 50 and older, your limits increase to $4,500 for 2005 and $5,000 for 2006 and 2007 • Cannot exceed compensation • Reduces contributions that can be made to Traditional IRAs	• Earnings are tax-free if account is open for five years and withdrawn for a qualified reason: - age 59½ - disability - death - a first-time home purchase (lifetime limit for exemption on first-time home purchase is $10,000) • Not required to start withdrawals at age 70½
Traditional IRA	Anyone under age 70½ who has income from compensation (or who is filing jointly with a spouse who earns compensation). Anyone who has received a distribution from a qualified retirement plan and decides to roll over the proceeds of the plan into an IRA.	• $4,000 for 2005-2007 • For owners age 50 and older, your limits increase to $4,500 for 2005 and $5,000 for 2006 and 2007 • Cannot exceed compensation • Reduces contributions that can be made to Roth IRAs	• Earnings grow tax-deferred until withdrawn • Contributions may be tax-deductible
*MAGI=Modified Adjusted Gross Income from the federal tax form Source: CUNA Mutual Group, "Individual Retirement Accounts, Comparing Your Options." Not intended as tax advice. Please consult a tax professional.