Roth IRAs offer a tax-advantaged approach to accumulating funds for retirement by allowing contributions to grow tax-deferred until they are withdrawn. Individuals may annually contribute up to $3000 or 100% of their earned income, whichever is less. IRA owners 50 years old or older may contribute an additional $500 catch-up contribution. Distributions from Roth IRAs will be income tax free if the Roth IRA is at least 5 years old AND the IRA owner is 59½ years old or older.

• Contributions are not tax-deductible
• Roth contributions grow tax-deferred and may be tax-free when removed
• Individuals may make Roth IRA contributions at any age provided they have adequate earned income
• Individuals filing a single return earning between 95,000 and 110,000 may have their contributions reduced or eliminated.
• Married couples filing a joint return earning between 150,000 and 160,000 may have their contributions reduced or eliminated.
• Generally, your IRA contributions must be made on or before April 15, your federal income tax filing deadline
• Traditional IRAs may be converted to Roth IRAs, Consult IRS publication 590 for details.
• Roth IRAs do not require minimum distributions
• Distributions may be income and penalty tax-free if the IRA owner meets certain requirements.

SEP IRAs are special IRAs that accept company contributions on behalf of the IRA holder. A business may establish the SEP plan by completing IRS form 5305-SEP. After the plan is in place, employees of that business that meet specific age, work experience, and earnings requirements may establish SEP IRA accounts that can accept company SEP contributions.

• Only a business owner can establish a SEP plan.
• 2003 contribution limit is the lesser of $40,000 or 25% of compensation. Special calculations apply to sole proprietors and partnerships
• SEP contributions are discretionary and flexible
• SEP plans are 100% vested
• SEP contributions may be deductible for the business and are not taxable to the participant
• SEP plans may be established and funded up to the employer's income tax filing deadline plus extensions
• Traditional IRAs can accept SEP contributions
• SEP contributions grow tax-deferred until removed
• Employees do not contribute to the SEP IRA; the plan is funded entirely by the business
• SEP Participants must begin required minimum distributions by April 1st of the year following the year they turned 70½
• Distributions taken before the participant reaches age 59½ may be assessed a 10% tax penalty

SIMPLE IRAs are special IRAs that accept both company and employee contributions. To be eligible for a SIMPLE plan, a business must not have more than 100 employees. Once a SIMPLE plan is active, employees of that business that meet work experience and earnings requirements may establish SIMPLE IRA accounts that can accept company and employee SIMPLE contributions.

• Only a business owner can establish a SIMPLE plan
• SIMPLE plans may be established using the 5304-SIMPLE plan
• 2003 employee contribution limit $8000
• Employees 50 years old and older may make a $1000 catch-up contribution
• Company SIMPLE contributions are mandatory and may be either a matching or non-elective formula
• Employer contributions are tax deductible
• Deadline to establish a SIMPLE is October 1st
• Employees may make voluntary salary deferral SIMPLE contributions
• Employee contributions are tax deductible
• Contributions grow tax-deferred until removed
• Distributions taken within the first 2 plan years are subject to a 25% penalty tax
• Distributions taken before the participant reaches age 59½ may be assessed a 10% penalty tax
• SIMPLE Participants must begin required minimum distributions by April 1st of the year following the year they turned 70½

Traditional IRAs offer a tax-advantaged approach to accumulating funds for retirement by allowing contributions to grow tax-deferred until they are withdrawn. Individuals may annually contribute up to $3000 or 100% of their earned income, whichever is less. IRA owners 50 years old or older may contribute an additional $500 catch-up contribution.

• Individuals may make IRA contributions up to age 70½ provided they have adequate earned income
• Contributions may be fully or partially deductible depending on the participant's income, tax filing status, and if they participate in a retirement plan
• IRA earnings grow tax-deferred until removed.
• Generally, IRA contributions must be made on or before April 15th, your federal income tax filing deadline
• Participants must begin required minimum distributions by April 1st of the year following the year they turned 70½
• Distributions taken before the participant reaches age 59 ½ may be assessed a 10% tax penalty
• Some exceptions apply to the 10% tax penalty. Consult IRS Publication 590 for details.

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