Roth IRAs are very similar to traditional IRAs but with different guidelines for investors.

Named after Senator William Roth of Delaware, a longtime IRA advocate, the Roth IRA allows you to contribute up to $4,000 in 2005-2007. Unlike a Regular IRA, those contributions are not tax-deductible and there are income limits for Roth IRAs. For more detailed information concerning IRAs, stop by and speak with a member services representative.

There are income limits for Roth IRAs. For singles, you can contribute the full $4,000 if your income is less than $95,000. Contributions gradually phase out as income reaches $110,000. Individuals making over $110,000 are restricted from making contributions. Similarly, the income limits run from $150,000 to $160,000 for married couples filing jointly. Couples making less than $150,000 can contribute up to $4,000 each. Again, couples making over $160,000 combined are restricted from making contributions.

When you withdraw money, you pay no taxes on the interest earned if it's been in the account at least five years and:

* You are older than 59 1/2, or
* You become disabled, or
* You die and it's paid to your beneficiary, or
* You use the money for a first-time home purchase ($10,000 lifetime withdrawal limit).

Also, unlike a Regular IRA, which requires you to start withdrawing money at age 70 1/2, a Roth IRA has no such requirement. You can let the money sit, while earnings grow tax-free, for as long as you like.

You can convert funds from a Regular IRA to a Roth IRA if your adjusted gross income doesn't exceed $100,000 for both singles and married couples filing jointly. You also should know that contributions claimed as tax-free are taxed within the year you convert the funds.