When can I withdraw from my investment? An IRA is designed to be there for your retirement years, so you may access it at age 59 1/2 without any penalty. However, you will have to pay income taxes on the money you withdraw from your account at your then current income tax level. If you choose to take money out of your account before you turn 59 1/2, there is an additional 10% penalty that must be paid to the United States Government. After you reach age 70 1/2, you must start taking distributions from your IRA. Those rules will be give to you when you set up your account with us.

Roth IRA's

What is a Roth IRA? It is an Individual Retirement Account similar to an IRA, except that you do not get to reduce your income on your tax return. You pay taxes on the money you put into your Roth IRA, but when you withdraw the funds at or after age 59 1/2 there is no tax obligation on the amount you initially put in or any of the growth it may have experienced when you make qualified distributions. IE - You take the money out tax free. The maximum a person can contribute into an Roth IRA for 2009 is $5,000. There are special catch-up provisions for people who have attained age 50; for 2009, that additional amount is $1,000. Also, your contribution into a Roth IRA is not limited by your participation in another retirement plan, other than a Traditional IRA and certain income level limitations.
 
When can I withdraw from my investment? A Roth IRA is also designed to be there for your retirement years, so you may access it at age 59 1/2 without any penalty. You may also access it prior to age 59 1/2 without penalty for the following qualified distributions- disability, the purchase of a first home. If you take the money out of your account before you turn 59 1/2 for a non-qualified event there is a 10% penalty on the principal (the money your deposited) that must be paid to the United States Government. If you draw out all of the principal and then draw out the growth attained (before age 59 1/2) you will be taxed on the growth as ordinary income at your then current income tax rate - a good reason to wait until you're 59 1/2 before drawing money out of your Roth IRA!

How Do I Invest IRA's and Roth IRA's?

You have many options and vehicles available to invest your retirement funds, mutual funds, certificates of deposits (CD's), stocks & bonds, even a simple savings account. We would help you make a decision based on your investment tolerance and other factors pertinent to your personal situation and goals. To invest for the current year, you must deposit your money into your IRA or Roth IRA no later than April 15th of the following year.

What Do IRA's and Roth IRA's Cost?

The fees associated with investing vary from company to company and the type of investment you choose. There are also investment risks associated with any investment. These things should be disclosed to you when you discuss the options with your financial representative. We will give you a prospectus when you meet with us; we ask that you read it carefully and call us with any questions you have regarding your investment before making any decisions.