The Taxpayer Relief Act of 1997 (TRA 97) introduced an array of new IRA choices for Retirement Planning. TRA 97 also increased the income limits for tax-deductible contributions, which means that more people will now be able to benefit from tax-deductible contributions. After contributing the maximum allowable to your company-sponsored retirement plan, establishing an IRA can go a long way toward meeting your retirement income needs. If you or your spouse do not have a retirement plan at work, an IRA may be your only opportunity to save tax-deferred money and receive compounded investment earnings year after year and after paying taxes on the investment growth.

This tax-deferred compounding benefit is the key to an IRA's building power. And, with a Roth IRA, you have the opportunity to enjoy tax-free growth. These new and improved IRA options can be confusing. And choosing the right one may make a big difference to your future financial security in retirement.

The Roth IRA is the most flexible IRA yet. You can withdraw contributions for college, home down payments, expenses related to a disability or anything you feel like. However, you will generally have to wait five years to withdraw conversion contributions from traditional IRAs. Unfortunately, everyone is not eligible to open a Roth IRA. Unlike traditional IRAs (both tax-deductible and non- deductible), withdrawals from Roth IRAs after age 59 1/2 are not generally taxed. You pay your taxes on the front end by contributing after-tax dollars. Roth IRAs enable savers who remain in the same income tax bracket at retirement to accumulate more money than even tax-deductible IRAs do.

- Top -

Retirement plans and pensions- and even profit sharing plans- are no longer reserved for large corporations. Small businesses now have the opportunity to enjoy many of the benefits of these plans, such as retirement savings, tax advantages and the enhanced ability to attract and reward top- quality employees. No Pension Plan? You probably have your reasons. After all, you are a business owner, not an accountant. Who has time to study tax laws? Like any successful company, your business is changing all of the time. It is difficult to keep up, but you know your employees would greatly appreciate the security they could earn with a company-sponsored retirement plan. You also want a plan that will let you keep the most money you can.

Pension Plans can help businesses attract and retain high quality employees. Companies can choose from a variety of alternatives to develop an employee pension plan that meets their budget and helps attract and retain top-notch employees. Of these choices, many employers choose to offer one of the following four plans:

* SEP
* Traditional Defined Contribution Plan
* 4O1K Plan
* SIMPLE IRA

These plans were designed to enable companies of all sizes to develop a pension plan that meets its goals and resources.

These products:
* are NOT deposits Insured by the FDIC or any federal government agency.
* are NOT obligations of Peoples-Webster County Bank.
* are NOT guaranteed by Peoples-Webster County Bank.
* may lose value.

- Top -