IRAs

May I rollover a traditional IRA into a Roth IRA?
Yes.  For single filers and married couples filing jointly, funds in a traditional IRA can be converted to a Roth IRA as long as your adjusted gross income doesn’t exceed $100,000 (some restrictions on the types of funds which can be rolled over apply).  Distributions are taxed in the year you convert the funds.

Can I contribute to both a traditional IRA and a Roth IRA?
Yes, as long as your combined contributions are no more than $5,000 during any year for members under the age of 50.

What is the 10 percent early distribution penalty and how can an IRA holder avoid it?
Money taken out of a traditional IRA before the IRA holder reaches age 59 ½ is considered an early distribution and is generally subject to a 10 percent penalty.  This does not apply in a situation of death, disability, equal payments, medical expenses, health insurance premiums following unemployment, first home purchase, higher education expenses or IRS levy.