Roth IRA

A Roth IRA can help you plan for your retirement and increase your investment options for your future retirement. Unlike the traditional IRA, the Roth IRA contributions are not tax-deductible; rather, earnings and qualified distributions are tax-free. It's simply the smart way to invest in your future.

Features of a Roth IRA

• Qualified distribution from the account are not taxable.*
• Taxable earnings only takes place if the distribution is not a qualified distribution.
• Roth IRA's are not restricted by participation in an employer sponsored retirement plan.
• Contribute up to $4,000 for tax year 2006. If you are 50 or older, you may contribute $5,000.
• Unlike the deductible IRAs, there is no prohibition on making contributions after attaining the age 701/2.

* Qualified distribution requirements: 1) made after taxpayer attains age 59; 2) made to a beneficiary after taxpayer's death; 3) made because taxpayer is disable; 4) used for a first time home purchase for you, your spouse, your child or grandchild (lifetime limit of $10,000). No payment can be a qualified distribution unless it is made after the five-year holding period beginning with the taxable year in which the taxpayer first contributed to a Roth IRA.

Rate Options

Fixed Rate: You may choose from 1-year, 18-month, 2-year, 2.5 year, or 5-year terms, which pay a fixed rate of interest for the length of the term.

Variable Rate: You may choose from 24, 36 or 60-month terms. Additional deposits can be added to variable IRAs in increments of at least $100. The rates on variable IRAs are indexed to the yields on Treasury Securities with matching maturities and are adjusted monthly.

There are substantial penalties for early withdrawals of principal. IRS penalties may also apply. (Consult your tax adviser).