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Roth IRAs_

Eligibility

Single taxpayers with an adjusted gross income:

• Of less than $105,000 for 2010 are eligible to make a full contribution;

• Between $105,000 - $120,000 may make partial contributions;

• Over $120,000 are not eligible to contribute.

Married taxpayers filing jointly with an adjusted gross income:

• Of less than $167,000 are eligible to make a full contribution;

• Between $167,000 - $177,000 may make partial contributions;

• Over $177,000 are not eligible to contribute to a Roth IRA.

Contributions

• Contributions are not deductible.

• The maximum contribution allowed, either to a Traditional IRA, Roth IRA, or a combination of each, is the lesser of 100% of earned income or $5,000 in 2010.

• A married couple filing jointly can contribute up to an additional $5,000 for a non-working spouse, as long as the contributions do not exceed their combined earned income. • Catch-up contribution for individuals age 50 and older is $1,000.

• Roth IRA holders may make contributions after age 70 1/2, as long as they have earned income.

• Contribution deadline is the individual’s tax return due date (excluding extensions).

Distributions

• Distributions can occur penalty free and tax free if "qualified."

• A distribution is considered qualified if the assets have been held in the Roth IRA for a minimum of five taxable years (beginning with the first taxable year for which a Roth contribution was made) and when one of the following events occur: 1) attainment of age 59 1/2; 2) disability; 3) the purchase of a first home; or 4) death.

• Distributions from the Roth IRA are not mandatory at age 70 1/2.

• A non-qualified distribution is subject to tax and penalty to the extent that it exceeds total contributions. Exceptions may apply.

Rollovers

• A rollover from one Roth IRA to another must occur within 60 days from the date of the withdrawal or it may be considered a distribution. Only one rollover may occur in each 12-month period.

Before making decisions about Individual Retirement Accounts, investors should consult their tax advisor. Stifel Nicolaus does not offer tax advice.