A Traditional Individual Retirement Annuity (IRA) is a special savings plan authorized by the federal government to help you accumulate funds for retirement.

If you receive compensation for personal services (wages, salary, commissions, tips, etc.), you may contribute to a Traditional IRA. Contributions may not be made for or after the year in which you reach age 70-1/2. You can make contributions to your Traditional IRA anytime up to and including the due date of your federal tax return for the previous year, namely, April 15.

In 2011, you can contribute all or part of your compensation up to:

• Individual taxpayer: $5,000 ($6,000 if age 50 or older)
• Married taxpayers: $10,000 ($12,000 if both spouses are age 50 or older) Contributions may be unequally divided between spouse IRAs, provided neither spouse IRA is allocated more than $5,000 ($6,000 if both spouses are age 50 or older).

Whether your contribution is deductible depends on certain factors:

• If neither you nor your spouse is an active participant in an employer-sponsored retirement plan, you can deduct 100% of your contribution, regardless of your income level.
• If only your spouse is an active participant in such a plan, you can deduct 100% of your contribution, as long as your Modified Adjusted Gross Income (MAGI) on your joint tax return is $169,000 or less for 2011.

Even if you are an active participant in such a plan, your contribution may be fully or partially deductible, depending on your income level as listed in the chart below. If you are unsure whether you are an active participant in such a plan, your W-2 form will indicate your participation status. If you need to know sooner, ask your employer.

2010 Tax Year	Single, Filing Individually	Married, Filing Jointly	Amount Deductible
Adjusted Gross Income:	Under $56,000	Under $90,000	Full Deduction
	$56,000-$66,000	$90,000-$110,000	Graduated Deduction
	Over $66,000	Over $110,000	Not Deductible

All of the interest earnings accumulated in your Traditional IRA remain tax-sheltered until withdrawn. Withdrawals are permitted any time after age 59 1/2 without an IRS tax penalty, but must begin by April 1 following the year in which you reach age 70 1/2. Beginning in 1998, the IRS allowed penalty-free withdrawals of contributions and earnings for up to $10,000 (lifetime total) toward a qualified first-time home purchase, and penalty-free withdrawals for qualified higher education expenses. The IRS continues to allow IRS penalty-free withdrawals of contributions and earnings for payment of major medical expenses (exceeding 7.5% of your MAGI); payment of health insurance premiums by certain unemployed individuals; death or disability of the IRA owner; and distributions by way of certain substantially equal periodic payments. After age 59 1/2 you may make withdrawals without a tax penalty even if you continue to earn income. It is not necessary to be retired to make withdrawals.

When you begin making withdrawals, you will be taxed only on the amount you withdraw each year on which taxes have not previously been paid. The remaining funds continue to accumulate tax-deferred. You will benefit at retirement, in all probability, by the fact that you will be in a lower tax bracket than at the time you make your contribution.

There is a UTUIA surrender charge of 5% for the first through third policy years, decreasing 1% per year through the seventh policy year. After seven years, 100% of the annuity value can be withdrawn without a UTUIA surrender charge. In addition, after the first policy year, 10% of the annuity value may be withdrawn once per policy year without a UTUIA surrender charge.

Note: All references to tax deduction and taxation of benefits refer only to the federal income tax law. Check state law for the impact of IRA contributions on state income taxes.