IRA

United Americas Bank will serve as custodian for your Traditional or Roth IRA so that you can ensure a secure retirement while taking advantage of either tax-deferred earnings or tax-free distributions.

Traditional IRA
The Traditional IRA encourages individuals to save money for retirement by offering tax-deferred earnings, and for many people, tax deductibility. Eligibility for a traditional IRA is based solely on compensation and age. Deductibility, however, is based on an individual’s active participation in an employer-sponsored retirement plan, federal income tax-filing status, and Modified Adjusted Gross Income (MAGI)¹

Roth IRA
Roth IRAs are nondeductible accounts that feature tax-free withdrawals for certain distribution reasons. Roth IRA owners are subject to Modified Adjusted Gross Income (MAGI)¹ when determining contribution eligibility. The extent of an individual’s Roth IRA contribution is based on the MAGI combined with the Federal income tax filing status.

Maximum Annual Contribution Levels
for Traditional and Roth IRAs ²

Tax Year	Standard Limit	Catch-Up Contribution Amount	Total Contribution Limit for Age 50 or Over
2004	$3,000.00	$500.00	$3,500.00
2005	$4,000.00	$500.00	$4,500.00
2006-2007	$4,000.00	$1,000.00	$5,000.00
2008³	$5,000.00	$1,000.00	$6,000.00

¹ Traditional and Roth IRA owners and/or their tax or legal professionals are responsible for determining MAGI. It is not a financial organization's responsibility.
² In the same year, you may contribute to both a Traditional IRA and a Roth IRA. Your total contribution is still limited to the annual contribution levels listed above.
³ Contribution limits will increase periodically through 2008 and are subject to cost-of-living adjustments thereafter.

Distributions Prior to Age 59 1/2 for Traditional and Roth IRAs

As a general rule, distributions prior to age 59 1/2 are subject to federal income tax and a 10% penalty tax. There are exceptions to the 10% penalty tax when the distribution is for one of the following reasons: Purchase of a first home ($10,000 lifetime limit), Higher Education Expenses, Disability, Death, Substantially Equal Period Payments (early retirement), Medical Expenses, Health Insurance Preiums, IRS Levy, or Conversion (prior to age 59 1/2). Other available distributions reasons include: Prohibited Transaction, Return of Excess, Direct Rollover, Recharacterization, or Revocation.