IRAs

IRA     Which one is right for you?

TRADITIONAL

• Generally  contributions are tax deductible

• Contributions and earnings are tax deferred

• Maximum contribution for 2008 is $5,000

ROTH   

• All earnings non taxable

• No required distribution

• No age limits contributions

• Higher income levels for qualifying contributions

Notes for both Traditional and Roth IRA’s

1)                   Add $1,000 “catch up contributions” if you are age 50+

2)                   “Saver’s Credit” this makes it easier for you to contribute -
new law that allows credit on the amount of income tax you
owe the IRS – Save up to 50% of your contribution      

Interest rates accurate as of 10-10-08

	Interest Rate	APY*
IRA  ($10,000 AND OVER)	3.26%	3.30%
IRA (UNDER $10,000)	3.16%	3.20%

* Annual Percentage Yield