Roth IRA Investments

Traditional IRA

Roth IRAs

The Taxpayer Relief Act of 1997 created Roth IRA'S. Roth IRA's are nondeductible IRA's that offer tax-free withdrawals for qualified distribution reasons.

Eligibility Requirements

To be eligible to contribute to a Roth IRA there are
Two qualifications.

• An individual must have taxable earned income from employment.
• The individual's income must fall within certain Modified Adjusted Gross Income (MAGI) limits.

Contribution Limits

For tax year 2010, the contribution limit for individuals under age 50 is 100% of earned income or $5,000 whichever is less. Married couples qualify for a maximum contribution of $5,000 to each spouse's IRA. There are special rules for contributions for a non-compensated spouse. Individuals age 50 or older can benefit from catch up contributions allowing you to invest an additional $1,000.

By choosing a tax-deferred investment, you keep your money at work throughout the life of the investment. There are many different investment opportunities available and our Investment Executives can help you decide which tax-deferred investments will best suit your financial needs.

Tax-advantaged investing can potentially help you reduce your short and long-term tax liability, keep more of your hard-earned income, and gain more control of you earnings.

Moving Roth IRA Assets

IRA assets can be moved from one IRA custodian/trustee to another IRA with little or no confusion. The two methods available for moving IRA assets are

• Rollover - A reportable distribution and a reportable "rollover" contribution.
• Transfer - A non-reportable transaction direct between IRA custodians/trustees.

Moving Employer Plan Assets

Employer plan money can never be rolled over directly to a Roth IRA. The money would have to be rolled into a traditional IRA and then converted to a Roth IRA. See a tax professional before converting.

Tax Benefits/Withdrawals

Although the Roth IRA is not tax deductible, the tax benefits upon withdrawal could be beneficial. The earnings on the Roth IRA could be tax-free upon withdrawal if:

• The five-year waiting period is met.
• Withdrawal is for one of four qualified distribution reasons:
  1. Age 59½
  2. Death
  3. Disability
  4. Qualified first home purchase

If you are interested in contributing to a Roth IRA or converting a Traditional IRA to a Roth, contact one of our Investment Executives at (866) 440-0391, ext. 3315. Neither PRIMEVEST nor its' Representatives may give tax advice.

PRIMEVEST Financial Services, Inc. is an independent registered broker/dealer and registered investment adviser. Member SIPC/FINRA. Securities and insurance products offered by PRIMEVEST: *Not FDIC insured * May go down in value * Not financial institution guaranteed * Not a deposit * Not insured by any federal government agency.  FINRA Registered Branch: 180 Schwenk Drive, Kingston, N.Y. 12401

Advisory services may only be offered by Investment Adviser Representatives in connection with an appropriate PRIMEVEST Advisory Services Agreement and disclosure brochure as provided.

For a comprehensive review of your personal situation, always consult with a tax or legal advisor.  Neither PRIMEVEST, nor any of its representatives may give legal or tax advice.

View PRIMEVEST privacy policy and other important information.

Investment Executives are registered to conduct securities business and licensed to conduct insurance business in limited states. Response to, or contact with residents of other states will only be made upon compliance with applicable licensing and registration requirements. The information in this website is for U.S. residents only and does not constitute an offer to sell, or a solicitation of an offer to purchase brokerage services to persons outside of the United States.