Review the features and benefits of each type of IRA:

• Traditional IRAs
• Roth IRAs
• Rollover IRAs

Apply Online for a retirement account today. Not sure what IRA is best for you? Call Zions Direct at 1-800-524-8875.

Traditional IRAs
Traditional IRAs are one of the most common ways for individuals to save for retirement. Annual contributions are tax deductible, subject to income and whether you or your or spouse participates in an employer-sponsored plan. Individuals 50 or over can make "catch-up" contributions of an additional $500 in 2005 and $1000 in 2006-2008.

The following table includes the maximum Traditional IRA contribution per tax year:

Traditional IRA Distributions
All earnings and deductible contributions are taxed like ordinary income. If you take out money before you turn 59½ you may be subject to a 10% early withdrawal penalty, unless the amount withdrawn is used for certain qualified distributions, including:

• Retirement - Once you've reached the age of 59½ you can start taking distributions out without early withdrawal penalties. At age 70½ you're required to begin taking mandatory distributions.
• College Tuition - You can take money out of your IRA without early withdrawal penalties to pay for certain college expenses like tuition, fees, books, supplies, and equipment.
• Home Purchase - The IRS will waive the 10% penalty for withdrawals before age 59½ if the money you take out is used to purchase a new home for yourself, your spouse, a parent, child, or grandchild. Specifically, you can withdraw up to $10,000 over your lifetime to buy one or more homes, as long as the house you buy is either a first home or is purchased at least two years after the sale of your previous home. Consult your tax advisor for more information.
• Series of Payments - You can take money out of an IRA without penalties to use for any purpose as long as you take out a regular amount for five years or until you reach 59½, whichever is later.
• Medical Expenses - If you have medical expenses that total over 7.5% of your modified adjusted gross income in any given year, you can withdraw money penalty-free to pay for your expenses over the 7.5% level. If you should become disabled, you can withdraw whatever amount you wish without penalty.

Roth IRA
A Roth IRA can be an excellent alternative to a Traditional IRA. To be eligible to contribute:

• You must have earned income for the year; and
• Your "modified adjusted gross income" must not exceed certain limits

Unlike Traditional IRAs, contributions to Roth IRAs are not deductible. Instead, distributions from Roth IRAs can be exempt from federal income or penalty taxes if you keep a Roth IRA for at least five years and have reached age 59½, become disabled, die or incur allowable expenses related to a first-time home purchase.

Roth IRAs do not have required minimum distributions, which gives you more flexibility in estate planning. If you wish, you can leave the entire amount of a Roth IRA to your beneficiaries.

The following table contains the contribution limits based on tax filing status and modified adjusted gross income:

Rollover IRA
A rollover is a tax-free movement of cash or other assets from one retirement plan to another. Invest the assets within your IRA the way you want, using our wide range of investments options. Please call Zions Direct at 1-800-524-8875 for assistance in rolling over assets from a qualified retirement plan.

The discussion above is intended for informational purposes only and is not intended to provide specific advice or recommendations for any individual or organization. Because the facts and circumstances surrounding each situation differ, you should consult your attorney, tax advisor or other professional advisor for advice on your particular situation.

Zions Direct does not provide tax advice.