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Roth IRAs

  

Would you like the opportunity to invest your after-tax dollars and have the ability to withdraw your principal and earnings completely tax-free?

You can do so if the following conditions are met:

  1. The Roth IRA must be open for 5 or more years before withdrawal.
  2. At least one of the following conditions must be met:
    • You are age 591/2  or older when you make the withdrawal
    • You are disabled when you make the withdrawal
    • You are using the withdrawal for a qualified first home purchase
    • Withdrawals are made by your beneficiary after you die

You can withdraw from your Roth IRA at anytime. However, if you do not meet the tax-free withdrawal requirements stated above, you may be subject to a 10% early withdrawal penalty.

A Roth IRA, unlike a Traditional IRA, has no maximum age limit for making contributions or mandatory age when you must begin taking withdrawals.

2010 Roth IRA Eligibility Requirements:

  • You have earned income equal to the amount you contribute, up to a maximum of $5,000 ($10,000 combined for spouses if you file a joint return) per year.
  • You may make an annual contribution to a Roth IRA by the due date for your federal income tax return for the year. For tax year 2010, the deadline is April 15, 2011.

2010 Roth IRA Contribution Limits

Taxpayers with high-income levels may not be able to contribute to a Roth IRA, or their contributions may be limited to an amount less than $5,000. Contribution limits are dependent upon your filing status and the amount of your modified adjusted gross income (MAGI).

All decisions regarding the tax implications of your investment(s) should be made in connection with your independent tax advisor.

The following table shows how your contribution limits may be restricted:

You may make If you are married, filing jointly and your MAGI is: If you are single and your MAGI is:
A Full Contribution Less than $167,000 Less than $105,000
A Reduced Contribution Between $167,000 and $177,000 Between $105,000 and $120,000
No Contribution More than $177,000 More than $120,000

Catch-up contribution provision for individuals attaining the age of 50 before December 31, 2010

  • In addition to the maximum contribution limit, for 2010, eligible IRA holders can contribute up to $1,000 as a catch-up contribution.

An HSBC Securities Financial Advisor will be happy to tell you more about the Roth IRA, and whether it's the right retirement investment for you. Your advisor can also assist you with rollovers of your IRA assets. A world of financial knowledge awaits you at your neighborhood HSBC branch.
Call 1-800-662-3343 or visit your HSBC branch to arrange a meeting.

Distributions from IRAs made prior to age 591/2 may result in penalties.





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Securities, Annuity and Insurance Products are:

NOT A BANK DEPOSIT OR OBLIGATION OF THE BANK OR ANY OF ITS AFFILIATES

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MAY LOSE VALUE


All decisions regarding the tax implications of your investment(s) should be made in connection with your independent tax advisor.

HSBC Securities (USA) Inc. or any other member of the HSBC Group may from time to time underwrite, perform or seek to perform investment banking services for issuers or make a market or otherwise buy or sell as principal securities or other instruments, or together with the issuers directors, officers and employees may have either a long or short position in securities, commodities, currencies or other instruments or futures or options contracts convertible into securities or other instruments.