May be suitable for:

• Wage-earning individuals who want to save for retirement
• Non-employed spouses, who file a joint tax return

Features:

• Any earnings accumulate tax deferred
• Contributions may be tax deductible in a traditional IRA
• Can be used in conjunction with any retirement plan
• Distributions from ROTH IRA are tax-free if certain requirements are met

Eligibility Requirements:

• Must be under the age of 70 1/2 to contribute (traditional). No age limit (ROTH).
• Must have earned compensation during the year or be married to a wage earner

Plan Contribution Limits:

• As of 2004, Annual Contributions of up to $3,000, or 100% of compensation, whichever is less
• Non-employed spouses may also contribute up to $3,000 per year
• If you are over the age of 50 you may contribute $3,500.

Distributions:

• Distributions taken prior to age 59 1/2 may be subject to a 10% federal income tax penalty, in addition to ordinary income tax, unless rolled over within 60 days
• Minimum distributions required at age 70 1/2 for a traditional IRA

Deadline to Setup/Contribute:

• Tax-filing deadline not including extension (usually April 15)

For more information, please call us at 1.800.508.1144.