Who can contribute, and how much? If you are under age 70½ and have earned income from employment, you may contribute up to a maximum of $4,000. For individuals age 50 and older, the maximum contribution is $5,000 for the calendar year 2006.

Are all Traditional IRA contributions tax deductible? You may be eligible to take a tax deduction for the amount contributed to your Traditional IRA if you are not covered by a retirement plan at work. If you are covered by an employer retirement plan, your tax deductible contributions to a Traditional IRA could be limited based upon your "modified adjusted gross income" for the calendar year 2006. Please consult your tax advisor.

Should I contribute if I can't take a deduction? There are significant benefits to making a Traditional IRA contribution even if it is not currently tax deductible. A nondeductible contribution has certain benefits, such as sheltering earnings from taxation until withdrawn. Quite simply, no taxable non-IRA investment of the same type will generate nearly the same earnings over a lifetime of savings as nondeductible Traditional IRA contributions will. However, the Roth IRA may be even more beneficial in many instances.

Can I take a tax credit for my IRA contribution? Eligible individuals that meet certain income limitations may qualify for a tax credit of up to $2,000. Please consult your tax advisor.

When can I use my Traditional IRA assets? Unlike most employer retirement plans in which access is limited to such events as change of employment, plan termination, reaching retirement age, death or disability, access to your Traditional IRA funds is always guaranteed. However, until age 59½ there is a ten percent early distribution penalty unless you qualify for exemption.

Am I ever required to take funds from my Traditional IRA? You are required to take distributions from your Traditional IRA beginning in the year that you turn 70½. Failure to take the required minimum distribution will result in a penalty.