IRA Summary (2008) | Type of IRA | | | | | Contributions deductible? | Maybe | No | No | 2008 contribution limit | $5,000
(1) | $5,000
(1) | N/A | 2008 AGI phaseout range begins—joint return (2) | $85,000
(8) | $159,000 | $100,000 household AGI
(7) | 2008 AGI phaseout range ends—joint return (3) | $105,000
(8) | $169,000 | $100,000 household AGI
(7) | Tax-deferred earnings? | Yes | Yes | Yes | Withdrawals generally taxable? | Yes | No (4) | No (4, 5) | Home-purchase withdrawals permitted? | Yes ($10,000 lifetime max.)
(6) | Yes ($10,000 lifetime max.) | Yes ($10,000 lifetime max.) |
- Combined 2008 contributions to traditional and Roth IRAs cannot exceed $5,000 ($6,000 if age 50 or over).
- For single taxpayers, the 2008 AGI phaseout ranges begin at $53,000 (traditional) and $101,000 (Roth).
- For single taxpayers, the 2008 AGI phaseout ranges end at $63,000 (traditional) and $116,000 (Roth).
- Withdrawals of earnings are not taxable if held for at least 5 years, and if made after attainment of age 59½ or by reason of death, disability, or for a first-time home purchase (maximum: $10,000, lifetime).
- Taxes are payable at the time a traditional IRA is converted to a Roth IRA. Contributions can be withdrawn income tax-free at any time, but distributions of earnings may be taken tax-free from the Roth IRA only if certain requirements are met.
- Taxable but no 10% federal income tax penalty for early distributions.
- Not available for married filing separately.
- For traditional IRAs, the phaseout range applies to deduction limits for "active participants."
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