The dismal economy is what everyone seems to be talking about.
Here is this weeks information from Cynthia Scott with OMC Financial Services:
Advantages of a traditional IRA:
· no eligibility limits if you or your spouse don't have an employer sponsored plan.
· contributions may be tax fully or partially tax deductible based upon income limits even if you or your spouse participate in an employer sponsored plan
· can make nondeductible contributions if not eligible to make deductible contributions
· earnings are tax deferred
· employer sponsored pension plans generally can be rolled over to a traditional IRA to maximize investment choice
Disadvantages of a traditional IRA:
cannot make contributions after age 70 ½
· distributions are mandatory at age 70 ½
· distributions are taxed when withdrawn
· contributions are limited to $5000 ($6000 over age 50) for 2009
· both spouse and non-spouse beneficiaries are taxed on distributions received at their tax bracket.
If you have questions you'd like discussed, call us at 477-9400 or email at news@cnycentral.com
