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Contributions are tax deductible in the year they are made; taxes are deferred on the earnings until they are withdrawn. |
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Any person who does not take part in an employer sponsored retirement
plan regardless of income. Or, any persons who are active participants
in an employer-sponsored retirement plan and they file jointly and
their adjusted gross income (AGI) in 1998 is under $60k or single
filer whose AGI is under $40k. |
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The lesser of $4,000 or 100% of
the individual's earned income. ($5,000 for individuals 50+
in
age). |
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Contributions and earnings are not taxed until withdrawal. Distributions
before age 59 1/2 are subject to a 10% penalty. Two new exceptions
to the penalty: withdrawals of up to $10,000 for first-time home buying
and withdrawals for qualified educational expenses. Distributions
must begin at age 70 1/2. Contributions may not be made after account
holder reaches 70 1/2. |
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Contributions are
nondeductible. |
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Joint filers whose AGI is less than $150k (phasing out at $160k).
Single filers whose AGI is less than $95k (phasing out at $110k) |
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The lesser of $4,000 or 100% of
the individual's earned income. ($5,000 for individuals 50+
in
age). |
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Contributions are after-tax. Earnings are not taxed, even after
withdrawal, as long as the account is at least 5 years old and meets at least
one of the following criteria: the account holder is at least 59 1/2; the
account holder is dead or disabled; or the account holder is a qualified
first-time home buyer (distribution may be up to $10,000). Distributions need
not begin at age 70 1/2. Contributions may be made after account holder reaches
70 1/2. |
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Contributions are
nondeductible; withdrawals are tax free when used for a child's higher
education expense. |
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Contributions of up to $2000
per child under 18 years. |
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Up to $2000 per child under 18 years. Contributions are not aggregated
with Roth or traditional IRA contributions. |
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Contributions are made after-tax. Earnings are not taxed, even after
withdrawal, if used for qualifying educational expenses. Money not
spent on education or rolled over to another family member's account
must be paid out to the beneficiary at age 30 and is generally subject
to tax and a 10% penalty. Contributor may be over 70 1/2 and there
is no requirement of earned income. |
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