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Farmers Almanac
The 2014 Farmers Almanac
Farmers' Almanac

IRA Facts

IRA Facts

Investors have a variety of ways to save for the
future. When funding retirement, much like other
investments, choosing the right plan depends on the
length of the investment, budget and expectations of
performance versus the risk involved.

An individual retirement account is a personal
retirement savings plan with specific tax benefits.
IRAs are one of the most powerful retirement savings
tool available. Even if you have a retirement plan
through your employer, consider investing in an IRA.

- Traditional IRAs are available to any investor under
the age of 70 1/2 with taxable compensation. Annual
IRA contributions are limited to $5,000 in 2007 and
$6,000 in 2008 (Your income must be at least equal the
amount you are investing). Contributions to IRAs may
be tax deductible. If you or your spouse are not
covered by a 401 (k) plan, then generally, your
contributions are tax deductible. If one of you is
covered by a 401 (k) plan, then whether or not you
have a deduction will depend upon your modified
adjusted gross income.

- Roth IRAs are advantageous because contribution
monies and earnings portions are potentially tax
free when withdrawn. Requirements for tax-free
withdrawals on a Roth IRA are a five-year holding
period, reached age 59 1/2 at withdrawal, disability,
up to $10,000 for a first-time homebuyer or a
withdrawal made by your estate after your death. The
ability to withdraw funds with no taxes or penalties
is a key strength of the Roth IRA. But not all
investors are eligible to contribute to Roth IRAs.
Eligibility depends on your modified adjusted gross
income and your income tax filing status.

- Which IRA is best for you? The Roth IRA is probably
a better tool if you don't qualify for the
tax-deductible contributions of a traditional IRA. But
if you do, the choice is more difficult and depends on
many factors. A financial professional or advisor can
help you select the correct IRA.

With offices in New York and Savannah, Barbara
Treadwell has more than 20 years of experience in the
financial arena. A Certified Financial Planner,
Treadwell embraces the LEAP Systems principals of
coordinating and integrating assets for improved rates
of return, tax savings and better protection against
the eroders of wealth.

For more information, visit
www.treadwellassociates.com or call (800) 695-6007.

If you notice a hole in the upper left-hand corner of your Farmers' Almanac, don't return it to the store! That hole isn't a defect; it's a part of history. Starting with the first edition of the Farmers' Almanac in 1818, readers used to nail holes into the corners to hang it up in their homes, barns, and outhouses (to provide both reading material and toilet paper). In 1910, the Almanac's publishers began pre-drilling holes in the corners to make it even easier for readers to keep all of that invaluable information (and paper) handy.