IRA - COLLEGE SAVINGS - TRUST

RETIREMENT

       -- SOMETHING WE ALL LOOK FORWARD TO --

     ARE YOU PREPARED?

                     MANAGE YOUR RETIREMENT DOLLARS …

                 ….MAXIMIZE YOUR RETIREMENT EARNINGS

IRA     Which one is right for you?

TRADITIONAL

                A    generally  contributions are tax deductible

                B    contributions and earnings are tax deferred

                C    maximum contribution for 2008 is $5,000

ROTH   

                A    all earnings non taxable

                B    no required distribution

                C    contributions have no age limits

                D    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

(Early withdrawal may result in a penalty.  Not intended as tax advice.  Please consult a tax professional.)

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