With the uncertainty regarding Social Security and corporate pension plans funding retirement completely, the individual investor has to take a more proactive role to ensure a financially secure retirement.

Anyone under the age of 70 ½ with earned income can open a traditional IRA. This is an investment opportunity that should not be overlooked.
~ Earnings will be tax-deferred until the holder begins to withdrawn the funds, which can occur at age 59 ½ without penalty*
~ Contributions can be made up to $3,000 annually with a non-working spouse contributing the same amount to his/her own IRA
~ In certain cases, contributions may be tax deductible as well
~ Receive rollover contributions from an employer-sponsored qualified plan while maintaining the tax-deferred status of the account

Consider another option - the Roth IRA
The Roth IRA is similar to the Traditional IRA in annual contribution limits. However there are some important differences to note:
~ Participation is subject to compensation limits
~ Contributions can always be withdrawn tax and penalty-free
~ Contributions are never tax-deductible
~ Qualified distribution of earnings can be withdrawn tax and penalty free*
~ Contributions can be made after the age of 70 ½ if you have earned income

Take Advantage of the Coverdell Education Savings Account
This vehicle, formerly known as the Education IRA, is an excellent way to save tax-deferred for your child’s higher education.
~ Designated beneficiary must be under the age of 19
~ Contributions are limited to $2,000 per year per designated beneficiary
~ More than one person can contribute
~ Distributions to the designated beneficiary are tax-free if they are used for qualified educational expenses
~ Contributor subject to income limitations

Improve your Child’s College Savings by Participating in the 529 Plan
It’s a powerful way to save for higher education.
~ Your investment grows federal income tax free
~ Distributions for qualified education expenses are federally tax free
~ Director transfers from one 529 to another will be allowed for the same beneficiary
~ Maintain permanent control of the account

Simple IRA:
Employers with up to 100 eligible employees may establish this salary deferral plan. With a simple IRA, the employee can elect to defer compensation into an IRA subject to certain annual dollar limitations. The employer is required to make either matching or non-elective contributions for all the eligible employees. These contributions are tax-deductible for the employer.

SEP IRA:
With a SEP, employers can make tax-deductible contributions to both the employer and employee IRA within certain guidelines. SEP’s, with their more generous contribution limits, are favored by self-employed individuals.

Non-qualified withdrawals are subject to income taxes and penalties. *Incomes taxes are payable upon withdrawal and subject to a 10% tax penalty for withdrawals prior to age 59 ½.

Call or stop by today to schedule a consultation with an Registered Representative* located in your local bank.

*Registered Representatives offer security products and services through PFIC Securities Corporation, member NASD & SIPC. Not affiliated with InvestorServices or the bank.

Not a Deposit Not FDIC/NCUA Insured Not Insured by any Federal Government Agency
Not Guaranteed by the Depository Institution May Go Down in Value