It's never too early to contribute to a traditional 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.¹

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 reduce your taxes when you make deposits into an IRA.

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• Tax-deferred earnings on contributions²
• Certificate of Deposit choices with a wide range of terms
• Highly competitive interest rate

	Fast Facts
	Minimum Opening Deposit $500 Minimum deposit3
	Tax Year IRA Contribution Contribution Limits 2002-2004 $3,000 2005-2007 $4,000 2008 and beyond $5,000 (plus potential COLA increases in $500 increments beginning in 2009)   Catch-up Contributions 2002-2005 $500 2006 and beyond $1,000

1. Taxes will be due upon withdrawal at ordinary income tax rates. Withdrawals made before age 59½ may be subject to an additional 10% tax penalty.
2. Contributions may also be partially or fully tax-deductible, depending on whether individuals or their spouses are covered by another pension plan and how much income they earn.
3. Minimum deposit may depend on the underlying Certificate of Deposit into which the money is deposited

IRA Considerations

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

Rolling Over your IRA
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
	Brokerage IRAs††† Offered through American Savings Bank's Financial Services Group department Non-FDIC-insured investments, i.e., mutual funds and annuities