Fixed Annuity Savings Plan

Current "New Money" rate is 1.50%. See Interest Rates for more details.

Contribution Guidelines

Individual Retirement Account

The maximum annual contribution amount is limited to 100% of earned income up to $10,000 for joint filers (up to $5,000 each), and $5,000 for singles. If you turn 50 or older in 2010, you may contribute up to $6,000. This is a combined maximum for all Traditional and Roth IRAs you hold.

Traditional IRA
All or part of your contributions may be deductible. The determining factors for deductibility are the income restrictions and participation in an employer-sponsored qualified retirement plan.

You must cease making contributions to Traditional IRAs in the year in which you reach age 70½. Minimum required distributions must begin by April 1 of the year following the year in which you attain age 70½.

Roth IRA
Contributions are non-deductible. Earnings, however, are tax-free provided the account has been open at least five years and you are at least 59½ when you begin withdrawals. The availability of this type of IRA is phased out according to your AGI: for joint filers, $167,000 to $177,000; for single filers, $105,000 to $120,000.

IRA contributions can be made for tax year 2009 until April 15, 2010 or until your tax return is filed (excluding file extensions). If any portion of your Traditional IRA contribution is non-deductible, you must file form 8606 with your tax return. The plan administrator, IPC, can provide more details on deductibility upon request.

For Roth IRAs there is no age limit for contributions or withdrawals.

Under the AlumniAnnuity plan, you may roll over your accumulated balance in a qualified retirement plan into a Traditional IRA without tax consequences. You may also transfer or roll over a Traditional IRA into another Traditional IRA, or a Roth IRA. You may transfer a Roth IRA to another Roth IRA. You should be certain that you understand the tax consequences before executing any transfer.

Non-Qualified Tax-Deferred Annuity

If you wish to make contributions greater than those permitted under IRA regulations, or if you are not eligible to establish a deductible IRA, you may want to participate in the Non-Qualified Tax-Deferred Annuity plan. There are no limitations on contributions. You may contribute as much as you wish at any time.

Contributions are not tax-deductible. However, interest earnings will accumulate on a tax-deferred basis; that is, no taxes will be assessed until earnings are withdrawn. Withdrawals are processed from interest first, in accordance with IRS regulations.

IRS reporting requirements do not oblige you to report contributions to or current interest earnings on a Non-Qualified Tax-Deferred Annuity on your Form 1040. However, you must do so at the time of withdrawal.

There are no maximum age limitations for contributions or withdrawals.

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