What is a Roth IRA?
The Roth IRA is a type of individual retirement variable accumulation annuity contract that allows you to receive distributions on a tax-free basis. The Roth IRA does not provide up-front income tax deductions for contributions like there can be with a Traditional IRA. All contributions to a Roth IRA are made on an after-tax basis, but the Roth IRA provides the opportunity for tax-free investment earnings and tax-free distributions if qualified distributions are made.

Unlike other types of IRAs, you are not required to begin taking a distribution at any specific age and you can continue to make contributions as long as you have earned income, even after age 70 ½. Mandatory distributions are only required to be made after the death of the Roth IRA contractholder.

Am I eligible for a Roth IRA?

		Single taxpayers with a modified Adjusted Gross Income (AGI)1 of $105,000 or less in 2009 can contribute up to $5,000 per year.
		For single taxpayers with an AGI between $105,000 and $120,000, the maximum allowable contribution to a Roth IRA is proportionately reduced.
		Single taxpayers with an AGI of $120,000 or more in 2009 may not contribute.
		Married taxpayers filing joint tax returns with a modified AGI of $169,000 or less in 2009 can contribute up to $5,000 each per year, even if only one spouse has compensation.
		For married taxpayers filing joint returns with a modified AGI between $169,000 and $176,000 for 2009, the maximum allowable contribution to the Roth IRA is proportionately reduced.
		Married taxpayers filing joint returns with an AGI of more than $176,000 in 2009 may not contribute to a Roth IRA.
		Married taxpayers filing separate returns cannot contribute to a Roth IRA.

¹The modified AGI is used for calculating Roth IRA contribution limits. Please refer to Internal Revenue Code Publication 590 or consult with your tax advisor.

How much may I contribute to a Roth IRA?
The maximum contribution is currently the lesser of $5,000 for 2009 or 100% of your compensation, if you are single, or $5,000 for 2009 for each spouse or 100% of your combined compensation if you are a married couple filing jointly.

Both maximums apply to an individual's total contributions to all Roth IRAs (except rollovers) and are reduced by any contributions you may have made to any other type of IRAs.

Contribution limits
The annual dollar limit for contributions to a Roth IRA is limited to $5,000 for 2009 or 100% or compensation, if less. Similarly, rules limiting Roth IRA contributions based on the modified AGI apply.

The annual dollar limitation increase for year 2009 and subsequent years is $5,000 indexed for inflation in $500 increments.

Learn more about Contributions & Withdrawals.

REMINDER: Indexing does not automatically increase the limit each year; increases only apply when the inflation-adjusted limit equals or exceeds the next incremental amount.

Age 50 catch-up contributions
The dollar limits (before any phase-out based on the modified AGI) are further increased by an additional amount for individuals who are age 50 or older at any time during the year (i.e., attain age 50 by December 31). The additional limit for 50-year-olds, or so-called "catch-up contribution" limit, is:

For year 2007 and subsequent years - $1,000 not indexed for inflation

Thus, for example, the IRA contribution limits for 2009 are:

		$5,000 for individuals under age 50
		$6,000 for individuals age 50 or older

NOTE: Although the additional limit increase for 50-year-olds is referred to as a "catch-up contribution" limit, it does not require that the individual has contributed less than the maximum limit in prior years as other, traditional catch-up contribution rules do. The full additional age 50 contribution can be made even if maximum contributions have always been made in all prior years, subject to phase-out rules based on the modified AGI.

Learn more about Features & Benefits.

Roth IRA is a variable accumulation annuity contract and is issued on form 3814-IRA, with a Roth endorsement, or a similar form/endorsement specific to your state of residence. In the states of Maine, Oregon and Utah, the variable annuity contract is issued on form IRA-2004, or a similar form specific to your state of residence. This contract does not provide additional income-tax deferral advantages beyond those available in an IRA. You should carefully consider an annuity contract's other features before making a decision, as well as the potential for a loss of account value due to the Roth IRA's variable investment choices.