Roth INDIVIDUAL RETIREMENT

ACCOUNT (“ROTH IRa”)

Roth IRA due as of date of April 15 for prior year.

Roth IRA Maximum Contributions (Yearly Limits)*

                              Under Fifty              Fifty and Over                  

Year                       Yearly Limit            Yearly Limit                     

2002-2004              $ 3,000.00              $ 3,500.00

2005                       $ 4,000.00              $ 4,000.00

2006-2007              $ 4,000.00              $ 5,000.00

2008+                    $ 5,000.00              $ 6,000.00

Roth IRA (only) AGI Limitation

Joint Return: $ 150,000.00 to $ 160,000.00 (phase out)

Single Return:        $ 95,000.00 to $ 110,000.00 (phase out)

*Roth IRA Deductibility Formula

Yearly limit (lesser of yearly limit or 100% of compensation), less Maximum Contribution (less of yearly limit or 100% of compensation) multiplied by the ratio of (a) taxpayer AGI less applicable dollar amount ($ 150,000.00 Joint, $ 95,000.00 Single, $0.00 for married filing separate), over (b) $ 15,000.00 ($ 10,000.00 for joint return or married filing separate return).

Copyright 1996 - 2006, McChesney & Dale, P.C.