Individual Retirement Accounts (IRA's)

Traditional

A traditional IRA brings you significant upfront tax advantages, and with less money taken out for taxes, the power of compound earnings is strengthened.
With a traditional IRA:

• Earnings accumulate tax-deferred
• Contributions are tax-deductible if you qualify
• The amount you can contribute is increasing

The contribution amount for 2006 and 2007 is $4000. For owners age 50 and older, your limits are $5000.

Roth

Roth IRAs give many members an easy and safe way to plan for the future.

With a Roth IRA:

• Contributuions are allowed at any age
• Qualified distributions are tax-free
• Flexible withdrawal options are available
• The amount you can contribute is increasing

The contribution amount for 2006 and 2007 is $4000. For owners age 50 and older, your limits are $5000.

Coverdell Education Savings Accounts

With rapidly escalating costs of higher education, this dream can become a financial nightmare. The main benefits of a Coverdell ESA include:

• Unlike state 529 plans, Coverdell ESAs can be used to pay for qualified elementary and secondary education expenses.
• Earnings grow tax-free if distributions are used for qualified education expenses.

Contributions cannot exceed $2000 per year per child.

For more information please call 678-3563 #3.

For more financial planning and investment opportunities be sure to visit our financial services center located on the home page as Financial Planning.