Roth IRAs

While contributions to a Roth IRA* are not tax deductible, withdrawals are tax free if certain conditions are met. For 2009, the maximum contribution is $5,000 ($6,000 is you are over age 50).

Withdrawals from a Roth IRA are tax and penalty free if the account owner is at least 59½ years old and the account has been held at least five years. Withdrawals from a Roth IRA are also tax and penalty free under these circumstances:

• The distribution is due to total disability and the account has been held at least five years.
• The distribution is for a qualified first-time home purchase and the account has been held at least five years.
• The distribution is to a beneficiary after the owner's death and the account has been held at least five years.

Unlike the Traditional IRA there is no requirement that withdrawals be started at age 70½.

Eligibility to open a Roth IRA is based on income:

Filing Status	Modified Adjusted Gross Income	Eligibility
Single	$105,000 or less	Full contribution allowed
	$105,000 to $120,000	Partial contribution
	$120,000 or more	No contribution allowed
Married, filing jointly	$166,000k or less	Full contribution allowed
	$166,000 to $176,000	Partial contribution
	$176,000 or more	No contribution

* Erie Family Life products are not available in New York.

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