Roth Individual Retirement Accounts (IRAs)

For 2013, single individuals with earned income and a Modified Adjusted Gross Income (MAGI) less than $112,000, and married couples with earned income and a MAGI less than $178,000 and filing jointly are eligible to participate in a Roth IRA.

Single individuals with a MAGI of $112,000–$127,000 and married couples with a MAGI of $178,000–$188,000 may make a partial contribution.

Eligible Income¹

• Wages
• Salaries
• Tips
• Professional fees
• Bonuses
• Taxable alimony
• Commissions received as a percentage of profits or sales price
• Self-employment income from a sole proprietorship
• Partnership income for which services have been provided

Ineligible Income¹

• Income from rental property
• Interest income
• Dividend income
• Pension or retirement income
• Annuity income
• Deferred compensation
• Foreign earned income
• Any income not included in gross for federal taxes

For 2013, individuals younger than 50 may contribute $5,500 or 100% of eligible compensation, whichever is less.

For 2013, individuals age 50 and older may contribute $6,500 or 100% of eligible compensation, whichever is less.

All contributions are nondeductible.

Withdrawals

• You may withdraw your contributions tax-free and penalty-free at any time. If you converted your traditional IRA to a Roth IRA, the converted amount can be withdrawn tax-free and penalty-free if five calendar years have passed since the conversion.
• If you’re under age 59½, earnings on the account are subject to taxes, and a 10% early-withdrawal penalty may apply if you withdraw the money.
• If you are 59½ or over and have met the five-year requirement, all withdrawals are tax-free and penalty-free.
• There is no minimum required distribution during the lifetime of the original owner.

Roth Rollovers

You can also transfer assets from your old Roth retirement plans, including Roth 401(k)s, to your new Roth IRA when you change jobs or retire. By consolidating your retirement plans into a single Roth IRA, you can have a more complete view of your financial picture and better plan for retirement.

These products are only a few of the retirement and investment solutions offered by BB&T Investment Services, Inc. For information on other products and solutions, please contact a BB&T Investment Services, Inc. Investment Counselor.

• Bonds
• Mutual funds
• Stocks
• Annuities
• Exchange Traded Funds (ETFs)