Common Questions About IRAs

How much can I contribute to an IRA?
You may contribute up to $5,000 or 100 percent of your earned income (for 2008), whichever is less, each year.

What is the minimum contribution?
You can open an IRA account for as little as $500.

Who can establish an IRA?
A regular IRA can be established by anyone under the age of 70½ (on or before December 31, of the tax year) who has earned income from wages or salary.

You can establish an IRA for your spouse if you meet all of the conditions established by the IRS¹ including:

• You must be married at the end of the tax year.
• Your spouse must be under age 70½ at the end of the tax year.
• You must file a joint return for the tax year.
• You must have earned income for the tax year.
• Your spouse must either have no compensation or choose to be treated as having no compensation for the tax year.

What happens if I make a withdrawal from my IRA?
A distribution from your IRA may be taken at any time. However, if you take the distribution before age 59½ (and you do not qualify for an exemption), the distribution will be considered a premature distribution and you may be subject to a 10 percent penalty. After age 59½, you may withdraw all or part of your funds without penalty. You will, however, pay ordinary income tax whenever funds are withdrawn.

What if I don't take any money out of my IRA?
Traditional IRAs require that you begin taking minimum amounts out by April 1 the year after you turn 70½ years of age, or you will face tax penalties.

¹Check with the IRS or your tax advisor for complete details.

All products not available in all states.

Beneficial Financial Group's Advantage series tax-deferred annuities and single-premium immediate annuities are not available in all states. We recommend that you thoroughly read the annuity contract for actual governing contractual provisions and certain exclusions, limitations, reductions of benefits, and terms for keeping the annuity in-force. Beneficial Financial Group recommends that you consult your tax professional or attorney on specific points of interest to you.

Advantage Annuities: form 9-601-03.