Example 

Assumptions

Contributions to IRA are made at

===>

END of the year

Annual contribution amount

===>

$ 2,000

Annual interest or growth rate

===>

8%

Schedule of Accumulated Contributions & Earnings

Balance at

Year

Date

Contribution

Earnings

End of Year

1

12/31/2001

$ 2,000

$ -

$ 2,000

2

12/31/2002

2,000

160

4,160

3

12/31/2003

2,000

333

6,493

4

12/31/2004

2,000

519

9,012

5

12/31/2005

2,000

721

11,733

6

12/31/2006

2,000

939

14,672

7

12/31/2007

2,000

1,174

17,846

8

12/31/2008

2,000

1,428

21,273

9

12/31/2009

2,000

1,702

24,975

10

12/31/2010

2,000

1,998

$28,973

Totals

$ 20,000

$ 8,973

Note:

If the funds are deposited at the end of the calendar year, the funds will not earn interest during that year.