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IRA Information
| (Because of the tax implications of IRA and
ROTH IRA accounts, you should consult with your tax advisor before investing.) |
WHAT IS A TRADITIONAL IRA? WHAT IS A ROTH IRA? A Traditional
Individual Retirement Account ("IRA") is a custodial tax deferred account
for the benefit of you or your beneficiaries. In some cases annual contributions may
be tax-deductible. Withdrawals will be subject to income taxes.
In contrast, contributions to a Roth Individual Retirement Account ("ROTH
IRA") are not deductible from Federal income taxes. However, if you meet
the requirements, all earnings are free from Federal income taxes, and
neither your contributions nor earnings on them are taxable when you withdraw them.
State income taxes will depend on the particular state.
For both IRS and the Roth IRA the custodian of your Wall Street Fund shares is Firstar
Bank, N.A.
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| WHO CAN HAVE AN IRA OR A ROTH IRA?
IRA: Anyone under the age of 70 ½ who has earned income during a year
may contribute up to $2,000, or 100% of earned income, whichever is less, to an IRA. An
individual who is an active participant in an employer-sponsored retirement plan, however,
may not be able to make tax-deductible contributions to the IRA.
ROTH IRA: Anyone (note: there is no age limit) who has earned income and
modified adjusted gross income ("MAGI") below certain levels ($95,000 if
you are single, $150,000 if married and filing jointly) may contribute up to $2,000, or
100% of earned income, whichever is less, to a Roth IRA. The amount of the allowed
contribution is gradually reduced to zero as MAGI increases to certain income levels
($110,000 if you are single, $160,000 if married and filing jointly). Contributions to a
Roth IRA may be made whether or not you participate in a 401(k) or other retirement
program.
Contributions to an IRA and a ROTH IRA must be coordinated and together may not
exceed $2,000.
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| WHAT ARE THE TAX ADVANTAGES OF AN IRA OR A
ROTH IRA? |
IRA: In some cases your annual contributions may be tax-deductible. If you make
a rollover, or a transfer, you pay no taxes on the amounts that are rolled over or
transferred into a Wall Street Fund IRA. In all cases, the dividends and distributions
paid by The Wall Street Fund are tax-deferred until you withdraw your money. Beginning at
age 70 ½ you must begin to make certain minimum withdrawals.
ROTH IRA: Although contributions are made on an after-tax basis, all growth
in the assets and dividends and interest are tax-free. If your ROTH IRA has been
established for at least 5 years, (starting January 1 of the first calendar year in
which a contribution or conversion applies), and you meet the other requirements,
withdrawals will not be subject to Federal income taxes. As withdrawals are not reportable
income, they will not affect your adjusted gross income during retirement. There are no
minimum distribution requirements. |
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Located First Floor
Biloxi Schools Administration Building
160 St. Peters Street
***
P.O. Box 168
Biloxi, MS 39533
(228) 374-1810
Send questions or comments to bettcha@yahoo.com
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website, email John.Hall@BiloxiSchools.Net
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