IRA Products

Benefits of a Traditional Individual Retirement Account (IRA)

• Dividends you earn are not claimed as income until withdrawn
• Dividend credit is earned on a day in / day out basis and paid quarterly
• Maximum annual contributions: $5,000.00 for each individual wage earner for 2008
• Contributions are subject to federal regulations prohibiting their use as security for loans
• A statement of your account is sent to your home on a quarterly basis
• Catchup contribution of $1,000 if you are age 50 or older for 2008.

Roth IRA Information

• Contributions are not deductible, but the interest accumulates tax free.
• Contributions are limited to a maximum of $5,000.00 per year per individual for 2008.
• Contributions may be made at any age, even over 70½
• Income limits are $101,000.00 (for single filers) and $159,000.00 (for joint filers)
• After funds have been in the account for at least 5 years, earnings may be withdrawn tax-free and penalty-free for any of the following reasons:
    - Age 59 1/2 or older
    - Disability or Death
    - First time home buyer
• Prior to age 59½ the original contributions can be withdrawn tax-free and penalty-free at any time.
• Qualified "Special Purpose" distributions (of contributions and earnings) are allowed before age 59½ without a tax penalty for qualified higher education expenses and up to $10,000.00 towards a first time home purchase.
• No requirements to begin taking distributions by age 70½

Information on our Coverdell IRA's

• Funds are contributed to the account are considered a gift to a designated beneficiary under the age of 18
• Contributions are not deductible
• Contributions are limited to a maximum of $2,000 per year
• Joint filers with income below $190,000.00 and single filers with income below 95,000.00 are eligible for the full contribution amount
• Withdrawals are tax-free and penalty-free only for qualified higher education expenses
• Funds not used by the beneficiary may be rolled over into another Education IRA for another beneficiary
• All funds must be withdrawn by the time the beneficiary turns 30
• Funds not used by the beneficiary for qualified education expenses will be distributed to the beneficiary and subject to income taxes and a 10% tax penalty