Individual Retirement Accounts

Traditional

The contribution limit for a Traditional IRA for 2014 will be the smaller of the following amounts:

$5,500 for an individual or your taxable compensation for the year

$6,500 for an individual who will be age 50 or older at year end

Roth

The contribution limit for a Roth IRA for 2014 is the lesser of:

$5,500 for an individual or your taxable compensation for the year

$6,500 for an individual who will be age 50 or older at year end

Note: For all contributions, the taxpayer must have earned income (from compensation or self-employment activities) at least equal to the amount contributed to the IRA. For married couples filing jointly, either spouse can have the necessary earned income.

*For all up-to-date contribution limits reference IRA Publication 590.

Coverdell

A Coverdell ESA is a savings account that is set up to pay the qualified education expenses of a designated beneficiary. When the account is established the beneficiary must be under age 18 or unless is a special needs beneficiary.

Contributions: Any individual (including the beneficiary) who’s Modified Adjusted Gross Income is less than $110,000 or $220,000 if filing jointly can contribute.

Contribution Limit: Total contributions for the beneficiary cannot exceed more than $2,000 in any year.

For purposes of Coverdell ESAs, an eligible educational institution can be either an eligible postsecondary school or an eligible elementary or secondary school.

For the most up-to-date IRA rules and regulations, visit the IRS website at www.irs.gov.

*For more information and tax benefits of the Coverdell ESA reference IRS Publication 970.