Roth IRA - GEBA

The Roth IRA enables you to invest for your retirement and benefit from tax-free growth. GEBA's Member Service Representatives can speak with you about the specific uses of a Roth IRA and how it may be applied to your personal financial plan.

Eligibility: Anyone who has earned income. If you are single, your Adjusted Gross Income must be less than $101,000; if you are married, your combined Adjusted Gross Income must be less than $159,000.

Filing Status is.	AND Modified AGI is.	THEN.
Single, Head of Household	<$101,000	Contribute up to IRS annual limit
	$101,000 - $116,000	Contribution Amount is Reduced
	>$116,000	You can NOT contribute

Married Filing Jointly	<$159,000	Contribute up to IRS annual limit
	$159,000 - $169,000	Contribution Amount is Reduced
	>$169,000	You can NOT contribute

Married Filing Separate	Zero	Contribute up to IRS annual limit
	$1 - $10,000	Contribution Amount is Reduced
	>$10,000	You can NOT contribute

Contribution Amounts:

Year	Limit	Over age 50 Limit
2003	$3,000	$3,500
2004	$3,000	$3,500
2005	$4,000	$4,500
2006	$4,000	$5,000
2007	$4,000	$5,000
2008	$5,000	$6,000

Investment Options:

Guaranteed Investment Contract
Mutual Funds

Withdrawal Restrictions: In order to make tax-free withdrawals, the owner is required to have held a Roth IRA for at least 5 calendar years and one of the following conditions must apply:

Distribution is made on or after the date on which the individual attains age 59 ½;
Distribution is made to a beneficiary on or after the owner's death;
Distribution is attributable to the disability of the owner; or
Distribution is for the first time home purchase up to $10,000.

Note: A distribution for education or medical expenses is NOT tax-free, but the IRS 10% penalty does not apply.

Required Minimum Distribution: No Required Minimum Distribution at age 70 ½.

When would a Roth IRA be the right choice?

If you are not eligible make a tax-deductible IRA contribution
If you expect to be in the same or higher tax bracket at retirement
If you are looking for a way to pass on assets to heirs tax-free

The differences between the Roth IRA and the Traditional IRA:

	Contributions	Distributions
Roth IRA	Not tax-deductible	- Tax-free if "qualified distribution" - Not required at age 70 ½
Traditional IRA	May be tax-deductible	- Taxed as ordinary income - Required at age 70 ½

Income Tax Implications: GEBA does not provide tax services or advice to its members. We always recommend that you consult a tax professional for updated tax information and guidance on your particular situation.

NOTE: The information presented is only of a general nature and may omit many details and special rules. Accordingly, it cannot be regarded as legal or tax advice. We always recommend that you contact a tax expert regarding your individual situation.