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Kaplan Financial
16030 Ventura
Blvd
Suite 600
Encino, Los Angeles
CA 91436
818.783.6620 |
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Retirement Planning
Traditional IRA's
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Maximum $ 4,000
contribution for 2007. Maximum $ 5,000
contribution per year for 2008 and 2009.
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Contributions made prior to April 15 of the
current year qualify as a prior year contribution
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Contributions are tax-deductible
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Account grows tax-deferred
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Can not be a participant
in an employer sponsored retirement plan, with
exception
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Distributions prior to age
59 1/2 may be subject to penalties of 10% |
Roth IRA's
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Maximum $ 4,000
contribution for 2007. Maximum $ 5,000
contribution per year for 2008.
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Contributions made prior to April 15 of the
current year qualify as a prior year contribution
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Contributions are not tax deductible
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Account grows income tax-free
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Phase-out (Adjusted Gross Income - AGI)
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Single Taxpayer $ 99,000 - $ 114,000
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Married Taxpayer $ 156,000 - $ 166,000 |
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Annual Contribution Limits for Traditional and Roth
IRAs
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Tax
Year |
Individuals Under Age 50 |
Individuals Age 50 and Above |
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2007 |
$ 4,000 |
$ 5,000 |
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2008 |
$ 5,000 |
$ 6,000 |
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2009 |
Adjusted for Inflation |
Adjusted for Inflation |
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Roth
IRA Conversions
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Individual Retirement Accounts (IRA's) may be
converted into a Roth IRA as long as your Adjusted
Gross Income (AGI) for the current calendar year
is less than $ 100,000
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The $ 100,000 AGI limit is the same for taxpayers
filing either single or married filing jointly
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The amount being converted into a Roth IRA is not
included in the $ 100,000 limit
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Conversions from a Traditional IRA to a Roth IRA
will incur income taxes |
Roth IRA Distribution Rules
Roth IRA's held for at least five years and
distributions used for the following purposes are
not subject to penalties:
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First Time Home Purchase (up to $ 10,000)
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Disability
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Death
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Medical Expenses
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Retirement |
SEP IRA's (Simplified Employee Pension)
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Available to independent contractors (you receive
1099's instead of W-2's).
Contractor may contribute up to the greater of 25%
of net income from self-employment or $ 45,000 for 2007
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Contributions are tax-deductible
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Account grows tax-deferred
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Distributions prior to age 59 1/2 may be subject
to penalties |
401(k) Plans
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Maximum contribution of 16% of gross earnings up
to $ 15,500 for 2008
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Contributions are made on a pre-tax basis
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Account grows tax-deferred
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Distributions prior to age 59 1/2 may be subject
to penalties |
Coverdell Education Savings Accounts (formerly known
as Education IRA's)
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Maximum $ 2,000 per year contribution per child
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Contributions are not tax-deductible
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Account grows tax-free
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Account must be used for higher education purposes
by age 30
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Phase-out (Adjusted Gross Income - AGI)
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Single Taxpayer $ 95,000 - $ 110,000
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Married Taxpayer $ 190,000 - $ 220,000 |
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If you
would like to discuss your retirement planning needs,
contact us.
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Securities and advisory accounts offered through
LPL Financial
Member
FINRA/SIPC
Member of Securities Investor
Protection Corporation (SIPC). For an explanatory brochure,
please visit www.sipc.org |
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No
information provided on this site is intended to
constitute an offer to sell or a solicitation of an
offer to buy shares of any security, nor shall any
security be offered or sold to any person in any
jurisdiction in which such offer, solicitation, purchase
or sale would be unlawful under securities laws of such
jurisdiction.
LPL
trademark is a registered trademark of Linsco/Private
Ledger and is used here on the Kaplan Financial website
with permission.
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