Traditional IRA Information 2012

Summary: Established in 1975, this IRA provides for pre-tax saving for most individuals. All investment earnings grow tax-deferred until withdrawal. This option is available to you whether or not you or your spouse is covered by an employer's plan.

Eligibility: Everyone under age 70½, with earned income, is eligible to contribute to a Traditional IRA - there's no income limit.

Contribution Limits: 2011 - $5,000 + $1,000 catch-up provision if age 50+ Non-working spouse may be eligible for equal contributions based on working spouse's income

Deductibility: Based on the following factors. Consult your tax advisor to determine if your contributions are deductible.

•Tax Filing Status
•Active Participant Status
•Modified Adjusted Gross Income
Distribution Rules: All withdrawals are taxed at the ordinary income tax rate of the IRA holder. Withdrawals before the age of 59.5 are normally subject to an additional 10% penalty.

Required Minimum Distribution: The IRS requires that you withdraw at least a minimum amount - known as a Required Minimum Distribution - from your retirement accounts annually, starting the year you turn age 70-1/2.