Roth IRAs
A Tax-Free Option for Retirement Savings

With a Roth IRA, your contributions are not deductible.††† However, while a Traditional IRA can give you an immediate deduction on your taxes, a Roth IRA gives you the chance to build earnings that are completely tax-free later on. As long as you hold your Roth for at least five years and don’t withdraw money until you’re at least 59½, your withdrawals will be exempt from federal income taxes.

Unlike traditional IRAs, Roth IRAs allow you to continue making contributions after you reach 70½. You may make a regular contribution to a Roth IRA even if you participate in a retirement plan maintained by your employer if you or your spouse has compensation or alimony income equal to the amount contributed. You also aren’t required to take minimum distributions during your lifetime, which would enable you to transfer more of your wealth to your beneficiaries after your death.

	Highlights Below > Benefits You’ll Receive > Fast Facts > Converting Your IRA > Rolling Over Your IRA > IRA Options

Benefits You’ll Receive

• Tax-free earnings on after-tax dollars1
• CD choices with a wide range of terms
• Highly competitive interest rates

	Fast Facts
	Tax Year IRA Contribution2 Contribution Limits3 • 2002-2004 • 2005-2007 • 2008 and beyond • $3,000 • $4,000 • $5,000 (plus potential COLA increases in $500 increments beginning in 2009) Catch-up Contributions3 • 2002-2005 • 2006 and beyond • $500 • $1,000

1. Withdrawals made before age 59½ may be subject to an additional 10% tax penalty.
2. Based on an IRS formula, contribution limits are reduced when modified AGI (adjusted gross income) exceeds $95,000 for an
   individual (or $150,000 for a married couple, filing jointly), and completely eliminated when modified AGI exceeds $110,000
   (or $160,000 jointly).
3. Some states do not recognize the new contribution limits. Please consult a tax professional for details.

Converting Your IRA

You can convert your traditional IRA to a Roth IRA if your modified Adjusted Gross Income (AGI) is $100,000 or less and you are single or file jointly with your spouse.

Converting your IRA may have significant tax consequences. Before you take this step, be sure to consult with a tax professional.

Rolling Over your IRA

If you are retiring or changing jobs and anticipate withdrawing money from your employer's retirement plan, you may find yourself in a tax bind unless you rollover your assets into an IRA or another qualified plan. You can ask your employer to arrange for a "direct rollover" of your money into a new IRA account with us and not pay the mandatory 20% withholding tax.

You also can do an IRA-to-IRA rollover. You must complete the rollover within 60 days from the date you receive the assets from your old IRA to qualify. Just go to your financial institution and close your IRA, then bring the check to us. The IRS limits the number of these rollovers to one in a 12-month period.

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IRA Options

You may open an FDIC-insured Retirement IRA in addition to opening a self-directed IRA and investing in mutual funds and other non-FDIC-insured investments.

	Bank IRAs† Offered through American Savings Bank FDIC-insured accounts Fixed Term Available through branches
	Brokerage IRAs††† Offered through UVEST Financial Services Non-FDIC-insured investments, i.e., mutual funds and annuities