IRA FAQ

Who is eligible for a Traditional IRA?
Anyone who is under age 70½ and has earned income is eligible for a Traditional IRA.

How much can be contributed to a Traditional or Roth IRA?
For 2009, an individual may contribute up to 100% of compensation or $5,000, whichever is less.  In addition, individuals that attain age 50 by December 31 may make a catch-up contribution of $1,000.  Keep in mind that contributions made to both a Roth IRA and Traditional IRA may not exceed the annual maximum limit.

Who is eligible for a Contributory Roth IRA?
Anyone who has earned income and falls within the Modified Adjusted Gross Income (MAGI) limits is eligible for a Roth IRA. If you are single, your MAGI must be less than $110,000. If you are married, your MAGI must be less than $160,000.

Who can establish a SEP IRA?
Any employer or self-employed individual may establish a SEP IRA.

What are the eligibility requirements for employees to participate in a SEP IRA?
An employee is eligible if the employee has reached age 21, worked for the employer for at least 3 of the last 5 years, and has at least $500 in compensation from the employer.

How much can be contributed to a SEP IRA?
For 2009, contributions of up to 25% of each employee's compensation, or $49,000, may be made.  The  maximum compensation that may be considered for 2009 is $245,000.