Traditional IRA and Roth IRA
The chart below describes the differences between a traditional IRA and a Roth IRA. You may contribute simultaneously to a traditional IRA and a Roth IRA as long as the total amount contributed does not exceed the maximum allowable contribution. If you want to open an IRA account or have any questions related to an IRA, please call us at 1-888-353-6676 or 1-415-901-0311.

	Traditional IRA	Roth IRA
Eligibility	Working taxpayer under age 70 1/2.	Working taxpayer at any age with an annual gross income below $116,000 if single or $169,000 if married filing jointly.
Maximum Annual Contribution	1. Single, under age 50: $5,000 2. Single, age 50 and above: $6,000 3. Married, under age 50 (both): $10,000 4. Married, age 50 and above (both): $12,000 5. Married, age 50 and above (one): $11,000	1. Single, under age 50: $5,000 2. Single, age 50 and above: $6,000 3. Married, under age 50 (both): $10,000 4. Married, age 50 and older (both): $120,000 5. Married, age 50 and above (one): $11,000
Contribution Deadline	April 15, 2009 for 2008	April 15, 2009 for 2008
Tax Advantage	1. Contribution: tax deductible 2. Earnings: taxed deferred at the time you withdraw 3. Withdrawals: taxable	1. Contribution: not tax deductible 2. Earnings: free of federal income Tax 3. Withdrawals: tax free
Early Withdraw Penalty	10% penalty if earnings are withdrawn before age 59 1/2.	10% penalty if earnings are withdrawn before age 59 1/2 or before the account has been open for five years.
Penalty Exemption	Higher education expenses, first time home purchase, death or disability, certain medical expenses.	Higher education expenses, first-time home purchase, death or disability, certain medical expenses.

Tax Deductibility of IRA Contributions
If neither you nor your spouse participated in an employer-sponsored retirement plan such as a 401k, 403b or pension plan, your contributions are fully tax deductible. If you or your spouse participates in an employer-sponsored retirement plan, see the chart below to find the maximum amount of your deduction.

2008 annual IRA contribution limits*
	Younger than 50	50 or older
Roth IRA	$5,000	$6,000
Traditional IRA	$5,000	$6,000
Combination of both Roth and Traditional	$5,000	$6,000

* Source: Internal Revenue Service. Also see IRS Publication for more information. Tax issues involving IRAs can be complex. Please consult your tax or legal adviser before making any decisions.
** Modified adjusted gross income.