The New Look of IRAs
Traditional IRA Roth IRA
Qualifications McCoy Federal requires participants to be 18 years of age or older to get an IRA. Must have earned income and not have reached age 70 1/2 by the end of the year. McCoy Federal requires participants to be 18 years of age or older to get a Roth IRA. Must have earned income. There are no age restrictions.
Maximum Contributions Taxable years beginning:
In 2002 thru 2004 .. $3,000
In 2005 thru 2007 .. $4,000
In 2008 and after .. $5,000*		 Taxable years beginning:
In 2002 thru 2004 .. $3,000
In 2005 thru 2007 .. $4,000
In 2008 and after  .. $5,000
Tax Status of Earnings Tax-deffered until withdrawn Not taxed if qualified distribution.
Contribution Restrictions Yes, if active particpant in employer retirement plan. Tax deductible. Contributions are not tax deductible.
Tax Deduction
CONTRIBUTION PHASEOUTS
  Singles Married Couples
2002 $34,000-$44,000 $54,000-$64,000
2003 $40,000-$50 000 $60,000-$70,000
2004 $45,000-$55,000 $65,000-$75,000
2005 $50,000-$60,000 $70,000-$80,000
2006 same as 2005 $75,000-$85,000
2007 same as 2005 $80,000-$100,000

Contributions are not tax deductible.

Yes, contributions phaseout between $95,000-$110,000 for singles and $150,000-$160,000 for married couples.
  Yes. Contributions up to the limit are fully tax deductible if you are not an active participant in a retirement plan. Otherwise phase-out rules apply. No.
Penalties for Early Withdrawal
None if:
* Over 59 1/2
* Death or disability
* Qualified medical expenses
* Certain health insurance
* Qualified college expenses
* 1st time home purchase (up to $10,000)
* Due to IRS levy
None if:
* Over 59 1/2
* Death or disability
* Qualified medical expenses
* Certain health insurance
* Qualified college expenses
* 1st time home purchase (up to $10,000)
* Due to IRS levy
Required Distributions Must begin by April following year participant turns 70 1/2. Only after death of the participant.
Contribution after age 70 1/2 Not allowed. Allowed.
  * To be adjusted annually for inflation in $500 increments.
** Not intended to be legal or tax advice. Consult your tax advisor for your specific circumstances.
*** Penalties apply for overfunding.
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