• For the most recent contribution amounts, please visit http://ira.com/faq/faq-05.htm

Do I get a tax deduction for my contribution?

• Deductibility of your contribution is based on whether or not you are an active participant in an employer-maintained retirement plan.  For more information, please visit www.ira.com

Do I pay taxes on the earnings?

• All earnings on your Traditional IRA contributions (deductible and/or non deductible) remain tax deferred until you make withdrawals for the account.  They are then taxed as income in the year they are withdrawn.

When can I withdraw funds without incurring any IRS penalty?

• You can withdraw funds from your Traditional IRA without incurring a 10 percent IRS premature-distribution penalty any time after you reach age 59 1/2.  You can avoid the penalty before age 59 1/2 if you become disabled, if the distributions are part of substantially equal periodic payments, for medical expenses in excess of 7.5 percent of your adjusted gross income, for health care insurance if you've been receiving unemployment compensation for at least 12 weeks, for qualified higher education expenses, or for a first-time home purchase.

How are funds taxed at distribution?

• If you are over age 59 1/2, simply include the taxable portion of the amount withdrawn (generally, deductible contributions and all earnings) as income.  However, if you are under age 59 1/2 and do not meet one of the exceptions, you must also pay a 10 percent IRS penalty for premature distribution.  The non-deductible portion of the distribution is not taxable when withdrawn nor is it subject to the 10 percent premature-distribution penalty.

When must I withdraw funds?

• When you reach age 70 1/2 year, you must begin to take minimum required withdrawals or penalties will be imposed.

Remember, there are three types of IRAs available--

this traditional IRA, the Educational IRA, and the Roth IRA .