IRA Options

Are you confused by all of the available retirement options? Recent legislative changes offer more ways to invest for your retirement. Whether you're an investor who needs retirement planning assistance or one who prefers to make your own investment decisions, Commerce Brokerage Services can help you plan for a comfortable retirement. Let us help you understand your IRA (Individual Retirement Account) options and how to select the one that is right for you.

What is an IRA and how does it work? An IRA gives you the chance to set up a tax-favored retirement account for yourself and your beneficiaries. Each year, you can make IRA contributions that are invested until you are ready to receive them in retirement.

Which IRA is right for you?

There are a variety of self-directed IRA options, and your Commerce Brokerage Services Financial Consultants can help you determine which one is right for you. Your options may include:

• A tax-deductible, tax-deferred Traditional IRA
  With a traditional IRA, you can contribute up to $5,000 per tax year. Your contribution(s) may be tax-deductible, and any earnings grow tax-deferred. Distributions are generally taxable in the year received and may be subject to a 10% early withdrawal penalty if you are under age 59 1/2. You must be at least 18 and have earned income to open an account.
• A Contributory Roth IRA offering tax-free growth of investment earnings
  With a contributory Roth IRA, You can contribute up to $5,000 per tax year. Your contributions will not be tax-deductible; however, earnings grow tax-free, and distributions are generally tax-free in the year received provided certain requirements are met. Eligibility to make a Roth IRA contribution is phased out for individuals with Adjusted Gross Income (AGI) of between $101,000-$116,000 (and couples with AGI between $159,000-$169,000). You must be at least 18 and have earned income to open an account.

• An IRA Rollover for distributions from employer-qualified retirement plans
  With an IRA rollover, you can roll over any eligible distributions from an employer-sponsored retirement plan. An IRA rollover is also known as a "conduit IRA" since this IRA allows you to preserve your right to roll over your savings into another employer-sponsored retirement plan at some later date. Any earnings grow tax-deferred and distributions are generally taxable in the year they are received. Distributions may be subject to a 10% early withdrawal penalty if you are under age 59 1/2.

A variety of investment choices

Commerce Brokerage Services offers a variety of IRA investment options to meet your changing lifestyle and financial needs. You may select from one or more of the following investments:

• Stocks - Choose stocks offered on any of the major exchanges or over-the-counter.
• Bonds - Select from a variety of types, including corporate bonds, treasuries, government agencies, and zero coupon bonds.
• Mutual Funds - Consider one or more of the 3,500 mutual funds that are available.
• Others - Ask about the other investment opportunities available to help you achieve your financial goals.

IRA account fees^*

• $20 annual maintenance fee^**
• $75 termination fee
• Commissions when buying or selling securities

*Fees subject to change without notice
**Charged in December of each year

Planning for your retirement is one of the most important decisions you will ever make. Therefore, it's wise to invest with a purpose and a strategy. Commerce Brokerage Services can help you with long-term planning, investment recommendations, in-depth financial information, and responsive service. Whether you're nearing retirement or just starting out in your career, now is a good time to make the most of your retirement savings opportunities.