Tax Advantaged Products

Choose from a full line of tax-advantaged products.

Evergreen Investments offers a wide range of funds and products that leverage tax regulations and enable you to reduce and/or defer taxes in some cases. Here you can find a comparison chart on Evergreen Investments IRA products, for more IRA information, go to IRAs.

IRA Plans

IRA RequirementsTraditional IRA Rollover IRA*Roth IRASEP IRACoverdell Education Savings Account (formerly Education IRA)
Maximum Contribution (per year) Contribute the lesser of 100% of earned income¹ or a maximum of: $4,000 for 2005-2007, $5,000 for 2008 and after (to be adjusted for inflation in $500 increments)

Beginning in 2002, individuals age 50 and older may make "catch-up" contributions. Additional contribution allowance is:

$500 for 2005, $1,000 for 2006 and after²		Contribute* the lesser of 100% of earned income² or a maximum of: $4,000 for 2005-2007, $5,000 for 2008 and after (to be adjusted for inflation in $500 increments)

Beginning in 2002, individuals age 50 and older may make "catch-up" contributions. Additional contribution allowance is:

$500 for 2005, $1,000 for 2006 and after2
*Contributions subject to MAGI limits		Maximum 2005 contribution is the lesser of the following amounts:

Up to 25% of employee's compensation or $42,000 *Compensation is generally limited to $210,000

If self-employed, special rules apply. Refer to the Self-Employed Person's Rate Worksheet in IRS Publication 590

2005 and after: $2,000 per child per year
Contribution DeadlineApril 15th of the following year, the tax filing deadlineApril 15th of the following year, the tax filing deadlineDue date of employer's return including any extensions

April 15 of the following year
Restrictions on ContributionsMust be under 70½ at year-end

Must have earned income		Not available for taxpayers with Modified Adjusted Gross Income (MAGI) over $110,000 (single) and $160,000 (joint).

Partial contributions are allowed for MAGI between $95,000-$110,000 if single, and $150,000-$160,000 if married filing jointly.

Must have earned income		An employee is eligible if he or she meets the following:

—Has reached age 21

—Has worked for you in at least 3 of the last 5 years

—Has received at least $450 in compensation from you in the current year

Less restrictive requirements can be established, but the employer may not establish more restrictive requirements.

Contribution is only for a designated child under 18 years of age. Contributors' Modified Adjusted Gross Income must not exceed $110,000 (single) and $220,000 (joint).¯ Joint filers with a MAGI between $190,000 and $220,000 may make a partial contribution.
Taxable DistributionsDistributions are taxable in the year withdrawn except for portions that are non-deductible contributionsEarnings are distributed tax-free if held at least five years in the Roth IRA and either paid out after age 59½ or distributed because of Death, Disability, Purchase of first home ($10,000 lifetime limit per individual), Medical expenses over 7.5% of MAGI, Health Insurance premiums for certain unemployed individuals, Higher education expenses, Substantially equal periodic payments

Distributions are taxable to the employeeEarnings are tax-free if used for:

Qualified primary, secondary and higher education expenses
Tax DeductionsDeductible contributions (full, partial, or none) are subject to income limits and participation in an employer- sponsored retirement plan

Contributions are not tax deductibleContributions may be a business deduction for the employerContributions are not tax deductible
Taxation on WithdrawalsEarnings and deductible contributions taxed as ordinary income; no tax on non-deductible contributions; early withdrawals may have 10% IRS penalty

No income tax on earnings if withdrawal requirements are met. Contributions may always be withdrawn tax- and penalty-free.Earnings and contributions taxed as ordinary incomeTax-free if used for eligible education expenses
Transfers and RolloversTransfer to and from other Traditional IRAs permitted. Rollovers accepted from employer plansConversions from a Traditional to a Roth IRA permitted if Modified Adjusted Gross Income (MAGI) is no more than $100,000 and you are not a married individual filing a separate return

Taxes apply at time of conversion

Transfers and rollovers from a Roth IRA to another Roth IRA are permitted

SEP IRAs follow under the guidelines of Traditional IRAsTransfers and rollovers from an Education Savings Account (ESA) to another qualified ESA holder are permitted
Required DistributionsDistributions must begin by April 1 of the year after you reach age 70½You are not required to take any funds out of your Roth IRA, but distribution rules will apply to your beneficiaries after your death

SEP IRAs fall under the guidelines of Traditional IRAsAny assets remaining in the IRA must be withdrawn when the beneficiary reaches age 30

 

* A Rollover IRA falls under the guidelines of a Traditional IRA.

  1. Earned income includes wages, salaries, tips, commissions, self-employment income, bonuses, alimony, royalties and director's fees.
  2. The Economic Growth and Tax Relief Reconciliation Act of 2001 is subject to a "sunset" provision (required by the Congressional Budget Act of 1974) which states that all provisions of the Act do not apply after year 2010. However, further legislation is anticipated which may allow some provisions to continue as stated in the Tax Relief Act. Please consult your tax advisor with any questions.

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View fund performance for current Evergreen Investments funds. Explore other Investing Essentials topics through the menu to the left. Access extensive reference materials through the Literature Library. Or contact a financial advisor for advice on the right investment strategy for your specific goals.

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Please consult a tax advisor to discuss if a tax-advantaged investment is suitable for your investment needs.