Provide for Your Future

Reap Tax Advantages Traditional IRA

The Traditional IRA may be an excellent tax-advantaged vehicle for you to consider as you build your retirement savings. You pay no taxes on Traditional IRA earnings until distribution. This allows you to reap the full advantages of compounding. And contributions to Traditional IRAs are tax deductible up to certain income limitations, giving you yet another tax privilege. Even if your contribution becomes non-deductible, it still makes sense to contribute simply for the tax-deferral benefits.

Traditional IRA Considerations
If you have compensation as defined by IRS Publication 590, and you are under the age of 70 1/2 for the entire tax year, you can open a Traditional IRA, even if you participate in an employer-sponsored plan. In the case of a married couple filing a joint Federal Income Tax return, a spousal contribution can be made if only one spouse has compensation or elects to be treated as if he or she has no compensation.

Accumulate Tax-Free Earnings Roth IRA

All contributions to a Roth IRA, and assets converted from a Traditional IRA, are made with after-tax dollars. Therefore, benefits come from the potential for tax-free distributions of your accumulated earnings at retirement.

Roth IRA Considerations
If you have compensation as defined by IRS Publication 590, and your modified adjusted gross income (MAGI) does not exceed certain limitations, you can open a Roth IRA even if you are already participating in an employer-sponsored plan. There is no 70 1/2 age limit on making contributions, nor is there a required minimum distribution mandate at age 70 1/2. Eligibility gradually phases out when MAGI is between $95,001 and $109,999 (single), $150,001-$159,999 (married filing jointly). When your income exceeds the MAGI maximums, you are no longer eligible to make a Roth IRA contribution.

Conversion from a Traditional IRA
Any existing Traditional IRA account balances may be converted into a Roth IRA if your household MAGI is $100,000 or less. This may allow your earnings to accumulate tax-free. The amount converted will be subject to income taxes. Please seek advice from a certified tax advisor when considering whether this is a wise option for you.

Roth IRA Distributions
You may take tax-free, penalty-free distributions from your Roth IRA if you satisfy two conditions. First, you must meet a five-year holding period which begins with the tax year in which you fund your initial Roth IRA contribution. Second, your distribution must be for one of the following reasons: attainment of age 59 1/2; death or disability; first-time home purchase. Distributions that are not qualified, i.e., don’t meet these two conditions, will be subject to tax and potential penalty.

IRA Contribution Limits
Investors under 50 years of age can contribute up to $4,000 a year in a Traditional IRA and/or Roth IRA through 2007. For 2008, this amount will increase to $5,000. After 2008, the contribution limit will be adjusted for cost-of-living increases in $500 increments through 2010.

If you’re 50 or older, you can benefit from the catch-up contribution, which allows you to invest an extra $1,000 a year through 2010.

Married couples with one spouse not employed may contribute twice the annual contribution limit or 100 percent of the combined income of both parties, whichever is less.

Take Control with Self-Directed Investments

With PrimeVest's self-directed Traditional IRA and Roth IRA, you control how and where your money is invested. Plus, you enjoy a wider range of investment choices than can be offered by non-self-directed IRAs, which are typically limited. Self-directed IRAs and Roth IRAs deliver more options, allowing you to choose from a full spectrum: stocks, bonds, mutual funds, unit investment trusts and more.

Start Today

PrimeVest's comprehensive range of investment choices makes opening a self-directed Traditional IRA or Roth IRA easier than ever before. And remember, when it comes to investing for retirement, time is your greatest asset, so don’t delay. Establish a self-directed Traditional IRA or Roth IRA today and begin building your financial foundation for the future.

Future financial security doesn’t just happen. It takes planning and proper investing today.

Since Social Security was never designed to be the sole source of retirement income, your own savings and investments can often determine whether your golden years will be prime time. One of the best ways to accumulate additional assets for retirement is through individual retirement accounts (IRAs). Self-directed Traditional IRAs and Roth IRAs can help you play an active role in planning your financial future.