Retirement Account

Roth IRA

Although contributions are not deductible, the tax-free income opportunity can offer appropriate investors an unprecedented long-term investment incentive. Provisions of the Roth IRA include:

• Working individuals and their spouses can each contribute up to $4000 annually to a Roth IRA if their joint income does not exceed certain limits. (If you are age 50 or older in the year of contribution, an additional $1000 may be contributed for a total of $5000.)
  
• Contributions are always non-deductible.
  
• Tax-free withdrawals of contributions and earnings may be taken after five years if you are at least age 59½ (certain exceptions may apply).
  
• As long as you or your spouse have earned income, contributions can be made after age 70½.
  
• Distributions from Roth IRAs are not mandatory during the holder’s lifetime.
  

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Roth IRA Conversion

• Traditional IRA may be eligible to convert into a Roth IRA.
• Converting a traditional IRA into a Roth IRA is a taxable event.
• Your representative can evaluate the benefit to you.
  

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Self-Directed Traditional IRA

The Traditional IRA is a popular vehicle for tax-deferred retirement savings. The benefits of the Traditional IRA include:

• Working individuals and their spouses can each contribute up to $4000 annually to an IRA (if you are age 50 or older in the year of contribution, an additional $1000 may be contributed for a total of $5000).
• If you do not have a retirement plan available at work, you can generally deduct your Traditional IRA contributions, regardless of your income.
  
• If you are covered by a plan at work, your contributions may be fully or partially deductible depending on your income.
  
• Regardless of your ability to deduct your contributions, your earnings will grow tax-deferred.
  
• Income taxes apply to taxable amounts when withdrawals are taken from your Traditional IRA.
  
• Taxable distributions may be subject to a 10% tax penalty if taken before age 59½ (certain exceptions may apply).
  
• Required Minimum Distributions must begin no later than April 1 of the year after an IRA accountholder turns 70½.
  
• No further contributions can be made after the year the accountholder attains age 70½.
  

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401k

• Employer sponsored program.
  
• Funded by employee salary deferrals.
  
• Pre-tax investing.
  
• Mutual funds or self-directed investing.
  
• $15,000 maximum annual investment for 2006.
  (maximum annual investment limits increase periodically)
  
• People age 50 or older in 2006 can deposit an additional $1,000.

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Simple IRA

• Employer sponsored program (less than 100 employees).
  
• Funded by employee salary deferrals.
  
• Pre-tax income investing.
  
• Mutual funds or self-directed investing.
  
• $10,000 is the maximum employee contribution in 2006.
• People 50 or older in 2006 can deposit an additional $2500.

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