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For detailed information on IRAs, visit www.ira.com

PLEASE READ BELOW FOR ANSWERS TO THE MOST FREQUENTLY ASKED QUESTIONS

What is an IRA?  An IRA is an INDIVIDUAL RETIREMENT ACCOUNT. An IRA is a personal savings plan that provides income tax advantages to individuals saving money for retirement purposes.

How does it work?  You invest money in an IRA, up to the amounts allowable under the tax law. These investments are termed "contributions." In many instances an income tax deduction is available for the tax year for which the funds are contributed. The contributions, as well as the earnings and gains from these contributions, accumulate tax-free until you withdraw the money from the account. You therefore enjoy the ability to generate additional earnings, unreduced by taxes on these earnings, each year the funds remain within the IRA.

Who is eligible to open an IRA?  Any individual can open and make contributions to a traditional IRA, as long as you, or your spouse (if you file a joint return), received taxable earned compensation during the year and you were not 70 ½ years old by the end of the year.

What are the contribution limits?  Due to the tax advantages of investing through an IRA, it is normally best to try and make the maximum annual contribution. The use-it-or-lose-it nature of contributions makes this all the more important (e.g., If you deposit $3,000 in 2008, you can't deposit $7,000 in 2009 [the $5,000 + the $2,000 you didn't deposit the year before]. You cannot contribute more than the total allowable amount during any fiscal year.)

What about my 401(k)? If you are contributing the maximum annual amount to your 401(k), IRAs may be your next best investment option for retirement, and are available to anyone with earned income.

How are Traditional and Roth IRAs different?  Any earnings in a Roth IRA are federally tax free. Earnings in a Traditional IRA are tax-deferred until withdrawn in retirement when they are taxed at your current rate.  Contributions to a Roth IRA can be withdrawn at any time. Withdrawals from a Traditional IRA before the age of 59^1/2 are subject to a 10% federal penalty.  Anyone with earned income under the age of 70^1/2 can contribute to a Traditional IRA. Roth IRAs are restricted to those who do not exceed certain modified gross income limits.  Traditional IRA contributions may be tax deductible. Roth contributions cannot be deducted.

What is a SEP IRA - Simplified Employee Pension?  This is an employer established and funded Simplified IRA, where the employer can put up to 15% of your compensation into a special IRA account. Sole proprietors, the self-employed, may establish these plans for their own benefits.

*The above information is a general overview.  Please contact your financial advisor or tax specialist for detailed information.  Thank you.