Roth IRAs
Although Roth IRA contributions are not tax-deductible, the earnings are tax-free. After the account has been open five years, you can withdraw the earnings tax-free for first time home purchase or if you need the money due to hardship caused by disability. The contributions you make can be withdrawn at any time penalty-free for the same reasons as a traditional IRA.

Telhio offers both IRA Share Certificates of Deposit, which can be opened with a minimum of $500 for terms of 3 months to five years, or IRA Savings accounts, to use for interim savings.

Eligibility
If you meet eligibility requirements, you may contribute up to 100% of your earned income or $4,000, whichever is less. Click here for eligibility requirements. This contribution limit is the maximum amount that you may contribute to all of your Traditional and Roth IRAs per year. Regular and spousal Roth IRA contributions must be made by your tax-filing due date, excluding extensions. Click here to view the Contribution Chart.

Tax -Year 2002 and Beyond
Contribution limits increase each year through 2008 and are subject to cost-of-living adjustments (COLA) each year thereafter. In addition to a contribution limit increase, those IRA owners who have attained age 50 may contribute an additional amount, allowing them to "catch up" on their retirement savings. The following chart shows the contribution limits in effect after tax-year 2002. Click here for more detailed information.

Penalty-Free Distributions
As a general rule, distributions prior to age 59 1/2 will incur an IRS 10 percent premature-distribution penalty. However, both the traditional and Roth IRA allow the following IRS penalty-free distributions, regardless of the type of asset that is distributed (e.g., contribution or earnings). Click here for more detailed information.