If you qualify, you may contribute up to 100% of your earned income or $5,000.00 whichever is less. If you over 50 years of age you may contribute up to $6,000.00 All earnings may be tax deferred until you make withdrawals.

If you qualify you may contribute up to 100% of your earned income or $5,000 whichever is less. If you are over 50 years of age, you may contribute up to $6,000. In order for earnings to be tax free, you must first meet a five-year holding period. After that, any earnings you withdraw for a qualified distribution reason are income tax free and penalty tax free.

The Economic Growth and Tax Relief Reconciliation Act (EGTRRA) of 2001 increases the contribution limit as shown in the chart below.

Tax Year	Contribution Limit
2002-2004	$3,000
2005-2007	$4,000
2008	$5,000
2009 and thereafter	$5,000 + cost of Living Adjustment (COLA)

To make up for lost retirement savings, EGTRRA also added "catch-up" contribution ability for individuals who have attained age 50 or older by the end of their taxable year. The chart below shows these additional amounts

Tax Year	Catch-up Amount
2002-2005	$500
2006 and thereafter	$1,000

Save for your children or grandchildren's education. If you qualify, you may contribute up to $2,000 per year per child.

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