May receive an eligible rollover distribution from a qualified plan. (Also known as a Rollover IRA.)
Tax deductions depend on salary level and whether IRA owner is eligible to participate in an employer-sponsored retirement plan.
Contributions are nondeductible.
Earnings accumulate on a tax-deferred basis.
Qualified distributions are tax free.
Contributions allowed after 70½.
Permits tax-free and penalty-free withdrawals of earnings after five years.
Permits tax-free and penalty-free withdrawals of contributions at any time.
Who Can Establish
Contributor must have earned income.
For married couples filing jointly, a nonworking spouse may also fund based on the earned income of the working spouse (up to the annual limit).
Annual Contribution limit for 2014 and 2015, generally lesser of: $5,500 ($6,500 if 50 or older) or taxable compensation for the year Note: Does not apply to rollover contributions. Roth IRA contribution might be limited based on filing status and income.
Up to the annual limit must be made by April 15 to be considered a prior-calendar-year contribution.
This information does not constitute tax advice. Please consult your tax advisor about your particular situation.