IRA and Roth-IRA Opportunities 

Written and edited by Harry Rubins for his clients and friends.
Not intended as legal or tax advice.
Obtain professional advice before taking action on this information.

• There is an IRA for almost everyone

• Traditional IRAs - $3,000 + $500 age 50 (indexed)

• Tax deductible - Adjusted Gross Income (AGI) limits have increased.
• Non-deductible - Even Bill Gates can contribute.

• Roth IRA - Tax-free withdrawals after age 59½  and 5 year hold
  $3,000 + $500 age 50 (indexed)

• Contributory - Contributions can be withdrawn at any time.
• Conversion - You may be eligible to convert some taxable IRAs to "tax-free." See "Roth Conversions" for details.

Educational IRA (Coverdell Education Savings Trust) - Contribute up to $2,000 per child per year in 2002 (not $3,000). Even Granny can contribute from her cookie jar! Tax- free withdrawals cover elementary, secondary, and college expenses including room and board.

• Many advantages of new IRA rules revolve around expanded eligibility and easier access to your money with fewer penalties.

• More people can contribute
  • Non-working spouses
  • Higher AGI limits to make tax deductible contributions

• Penalty-free access before age 59½ (Traditional and Roth)
  • Secondary educational expenses
  • First-time home purchase up to $10,000

• Retired individuals can make IRA (Traditional or Roth) contributions and have no earned income.

• Other spouse must work at least part time.

• The expanded opportunities for IRA contributions (Roth and non-active participant spouse) will help to increase personal savings.