Roth IRAs

While contributions to a Roth IRA* are not tax deductible, withdrawals are tax free if certain conditions are met. For 2012, 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	Less than $110,000	Full contribution
	$110,000 to $124,999	Partial contribution
	$125,000 or more	No contribution
Married, filing jointly	Less than $173,000	Full contribution
	$173,000 to $182,999	Partial contribution
	$183,000 or more	No contribution
Married, filing separately	Less than $10,000	Partial contribution
	$10,000 or more	No contribution

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

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