It's never too early to contribute to an IRA and help secure your financial future. Earnings grow tax-deferred until withdrawal at retirement, so your balance may grow faster than in a taxable account earning the same rate of return.

Annual contribution limits are higher than ever — you may even be able to contribute an additional "catch-up" amount of $500 if you're 50 or over. As an added benefit, you may also qualify for a tax credit if you contribute to an IRA.

	Highlights Below > Benefits You’ll Receive > Account Choices > Why Invest in an IRA? > IRA Investment Options

• Tax-deferred earnings on accumulated interest
• Some IRAs are also tax-exempt
• Certificate of Deposit choices with a wide range of terms and highly competitive interest rates
• The security of FDIC insurance

Account Choices

Traditional IRA
With a Traditional IRA, you can take advantage of tax-deferred earnings and possible yearly tax deductions. Spousal IRAs are also available if you meet certain income requirements. More

Roth IRA
With a Roth IRA your contributions are not tax deductible, but your withdrawals are tax-exempt if certain conditions are met. Spousal IRAs are also available if you meet certain income requirements. More

Education IRA (CESA)
A CESA enables parents, grandparents, guardians to save for a child's future education. Your contributions are not tax-deductible, but all earnings and withdrawals are tax-exempt and free of withdrawal penalties as long as the withdrawals are made for qualified education expenses. More

Compare IRA Accounts

Why Invest in an IRA?

Save on Current Taxes

On some IRAs you may be able to deduct all or part of your qualified contributions from your taxable income. The deductible amount depends on your income, marital status, and whether you're an active participant in an employer-sponsored plan as defined by the Internal Revenue Code.

Defer Taxes on Accumulated Interest

You also defer taxes by putting them off until you retire, when you may be in a lower tax bracket. The chart below shows you how much you may be able to save each year. You should consult your tax advisor to review your particular tax situation on the tax deductible status of an IRA. Or for more general information, you can speak with one of our Retirement specialists.

IRA Tax Savings Potential Chart

	IRA Deductible Contribution Amount	15% Tax Bracket Savings	28% Tax Bracket Savings	31% Tax Bracket Savings	36% Tax Bracket Savings	39.6% Tax Bracket Savings
	$500	$75	$140	$155	$180	$198
	$1,000	$150	$280	$310	$360	$396
	$3,000*	$450	$840	$930	$1,080	$1,188
	$6,000**	$900	$1,680	$1,860	$2,160	$2,376

* $3,000 is max contribution per person for tax year 2004
** Spousal max is $3,000 per person = $6,000

Open a Rollover If You Leave Your Job
If you are retiring or changing jobs and anticipate withdrawing money from your employer's retirement plan, you may find yourself in a tax bind unless you rollover your assets into an IRA or another qualified plan. You can ask your employer to arrange for a "direct rollover" of your money into a new IRA account with us and not pay the mandatory 20% withholding tax.

You also can do an IRA-to-IRA rollover. You must complete the rollover within 60 days from the date you receive the assets from your old IRA to qualify. Just go to your financial institution and close your IRA, then bring the check to us. The IRS limits the number of these rollovers to one in a 12-month period.

IRA Options
In addition to our FDIC-insured IRAs, your may open a self-directed IRA and invest in mutual funds and other non-FDIC-insured investments offered by the Financial Services Group.

	Bank IRAs† Offered through American Savings Bank FDIC-insured accounts Fixed Term Available through branches
	Investment IRAs††† Offered through American Savings Bank's Financial Services Group department Non-FDIC-insured investments, i.e., mutual funds and annuities