What Do Roth IRAs Offer?
Roth IRAs deliver tax-exempt earnings and tax-free withdrawals. If you meet the eligibility requirements, a Roth IRA offers several advantages. To be eligible to make the full annual deduction, a single filer must have an adjusted gross income (AGI) of $95,000 or less and joint filers must have an AGI of $150,000 or less. Annual contribution limits are as follows for 2006:

Individual Under the age of 50	Individual Age 50 and older*	Married (both) Under Age 50	Married (both) Age 50 and older*
$4,000	$5,000	$8,000	$10,000

*Individuals who attain the age of 50 before the close of the taxable year may contribute an amount in excess of the basic annual contribution.

With a Roth, while your yearly contributions are taxable, you pay no tax on principal or earnings at withdrawal – provided your Roth IRA has been open at least five years and you’re over the age of 59 ½. The Roth IRA also allows first-time homebuyers to withdraw up to $10,000 without paying taxes, again provided the account has been open five years. You can convert your traditional IRA assets into a Roth, but you must pay tax on the traditional IRA assets in the year of the conversion. Contact Tony Lopez for advice on why it might make sense to roll over your old 401(k)s and if a Roth IRA is the right choice for you.