Roth IRA

The Roth IRA offers a unique savings opportunity because unlike Traditional IRAs, contributions are nondeductible because they're made with after-tax dollars. However, qualified, regular contributions can be withdrawn tax- and penalty-free at any time – if certain criteria* is met.

Anyone who has earned income (or is filing jointly with a spouse who has earned income) may contribute to a Roth IRA based on the following income limits:

Benefits & Highlights

Contributions are allowed at any age as long as you or your spouse earns income
Qualified distributions are tax-free
No minimum yearly contribution
Dividends are compounded daily and posted monthly
No required minimum distribution
IRAs are federally insured up to $250,000 by the National Credit Union Share Insurance Fund

Contribution Limits
You can make the following maximum contributions to a Traditional or a Roth IRA:

2010 and 2011
$5,000 under age 50	$6,000 over age 50

*Be sure to consult your tax advisor regarding how various IRAs relate to your tax situation.

IRA Phase-Out Range and Limits
IRA Type	2010 Limit/Levels	2011 Limit/Levels	Change Summary
Traditional IRA (S = Single and Head of Household) (M = Married)	Contribution Limit: $5,000 Deduction Income Limits: (S) $56,000 and $66,000 (M*) $89,000/$167,000 to $109,000/$177,000	Contribution Limit: $5,000 Deduction Income Limits: (S) $56,000 and $66,000 (M) $89,000/$167,000 to $109,000/$177,000	Marginal change to phase-out income limits
Roth IRA	Contribution Limit: $5,000 Eligible income phase-out range: (S) $105,000 to $120,000 (M*) $167,000 to $177,000	Contribution Limit: $5,000 Eligible income phase-out range: (S) $105,000 to $120,000 (M) $167,000 to $177,000	Marginal change to eligible income limits

IRA Phase-Out Range and Limits

IRA Type

2010 Limit/Levels

2011 Limit/Levels

Change Summary

Traditional IRA
(S = Single and Head of Household)
(M = Married)

Contribution Limit: $5,000

Deduction Income Limits:
(S) $56,000 and $66,000
(M*) $89,000/$167,000 to $109,000/$177,000

Contribution Limit: $5,000

Deduction Income Limits:
(S) $56,000 and $66,000
(M) $89,000/$167,000 to $109,000/$177,000

Marginal change to phase-out income limits

Roth IRA

Contribution Limit: $5,000

Eligible income phase-out range:
(S) $105,000 to $120,000
(M*) $167,000 to $177,000

Contribution Limit: $5,000

Eligible income phase-out range:
(S) $105,000 to $120,000
(M) $167,000 to $177,000

Marginal change to eligible income limits

* Married filing jointly

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