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IRA Comparison Chart



Rollover IRA (Apply Now)
Description

  • Appeals to eligible investors who::
    Want to move retirement funds from an employer-sponsored plan to an IRA
  • Minimum balance:
    None

    Some investments may have minimums associated with them
  • Online Access:
    Account access to trading, balances, and activity through online brokerage
    Contributions
  • Annual Maximum Contribution :
    Eligible rollover amounts from employer sponsored plans are unlimited, but contribution limits are the same as Traditional IRAs
  • Catch-Up Provisions (for individuals age 50 and older):
    Same as Traditional IRA1
  • Contribution Deadline:
    April 15 of the following year, the tax filing deadline for Traditional IRA contributions.
  • Restrictions on Contributions:
    Same as Traditional IRA1
  • Deductible Contributions?:
    Same as Traditional IRA1
    Distributions
  • Taxation on Distributions:
    Same as traditional IRA

    Distributions are subject to current federal income taxes and a possible 10% penalty (if the participant is under age 59½)
  • Mandatory Distributions:
    Same as traditional IRA
    Set-up and Annual Account Maintenance Fee3
  • Set-up costs:
    None
  • Annual Fee:
    Self-Directed Brokerage IRA $50

    Ways to waive the fee4
    Investments
  • Choices:
    Full spectrum of investment choices, including:

    Mutual Funds (load and no-load)

    Stocks

    Bonds

    Options on stocks and common indexes

    FDIC-insured bank products (fixed-rate CDs and money market accounts)
  • Relationships:
    Professional assistance5 or do-it-yourself investing6

    Traditional IRA (Apply Now)
    Description
  • Appeals to eligible investors who::
    Anticipate being in a lower tax bracket in retirement, or

    Meet the criteria for making tax-deductible contributions and are most interested in a current tax deduction or not eligible to contribute to a Roth IRA
  • Minimum balance:
    None

    Some investments may have minimums associated with them
  • Online Access:
    Account access to trading, balances, and activity through online brokerage
    Contributions
  • Annual Maximum Contribution :
    Lesser of 100 percent of your earned income, or:

    2008 & beyond: $5,000 (to be adjusted annually for inflation after 2009)

    Aggregated with other IRA accounts (except Education Savings Accounts, SEP & Simple Employer Contributions)
  • Catch-Up Provisions (for individuals age 50 and older):
    $1,000
  • Contribution Deadline:
    April 15 of the following year, the tax filing deadline.
  • Restrictions on Contributions:
    Contributions can only be made prior to the year in which the IRA owner turns 70 ½

    Must have earned income
  • Deductible Contributions?:
    Subject to income limits and participation in an employer-sponsored plan
    Distributions
  • Taxation on Distributions:
    Earnings and deductible contributions are taxed as ordinary income

    10% federal tax penalty before age 59 ½ unless due to death, disability, eligible medical expenses, certain unemployed individual's health insurance premiums, limited "first time" home purchase ($10,000 life-time maximum), qualified higher expenses or IRS levy.

    No tax on non-deductible contributions
  • Mandatory Distributions:
    Age 70 ½ or death
    Set-up and Annual Account Maintenance Fee3
  • Set-up costs:
    None
  • Annual Fee:
    Self-Directed Brokerage IRA $50

    Ways to waive the fee4
    Investments
  • Choices:
    Full spectrum of investment choices, including:

    Mutual Funds (load and no-load)

    Stocks

    Bonds

    Options on stocks and common indexes

    FDIC-insured bank products (fixed-rate CDs and money market accounts)
  • Relationships:
    Professional assistance5 or do-it-yourself investing6

    Roth IRA (Apply Now)
    Description
  • Appeals to eligible investors who::
    Want tax-deferred earnings and qualified tax-free distributions

    Expect their tax bracket to be the same or higher in retirement

    Looking for tax-free income at retirement

    Interested in passing IRA assets to their heirs

    May not need their IRA assets to cover living expenses during retirement
  • Minimum balance:
    None

    Some investments may have minimums associated with them
  • Online Access:
    Account access to trading, balances, and activity through online brokerage
    Contributions
  • Annual Maximum Contribution :
    Lesser of 100 percent of your earned income, or:

    2008 & beyond: $5,000 (to be adjusted annually for inflation after 2009)

    Aggregated with other IRA accounts (except Education Savings Accounts, SEP & Simple Employer Contributions)
  • Catch-Up Provisions (for individuals age 50 and older):
    $1,000
  • Contribution Deadline:
    April 15 of the following year, the tax filing deadline.
  • Restrictions on Contributions:
    No age requirements

    Tax year 2008: Not available for taxpayers with annual Adjusted Gross Income over $116,000 (single) and $169,000 (joint)

    Must have earned income
  • Deductible Contributions?:
    Contributions are not tax-deductible
    Distributions
  • Taxation on Distributions:
    Qualified distributions of contributions may generally be distributed tax- and penalty-free

    Earnings are distributed tax-free and penalty free if held at least five years in the Roth IRA and either paid out after age 59 ½ or because of one of the following:

    (1) Death
    (2) Disability
    (3) First home purchase

    If earnings are taken earlier, they are subject to ordinary income tax and may be subject to a 10% penalty
  • Mandatory Distributions:
    None during lifetime

    Beneficiary (except spouse) must begin the year following the IRA owner's death
    Set-up and Annual Account Maintenance Fee3
  • Set-up costs:
    None
  • Annual Fee:
    Self-Directed Brokerage IRA $50

    Ways to waive the fee4
    Investments
  • Choices:
    Full spectrum of investment choices, including:

    Mutual Funds (load and no-load)

    Stocks

    Bonds

    Options on stocks and common indexes

    FDIC-insured bank products (fixed-rate CDs and money market accounts)
  • Relationships:
    Professional assistance5 or do-it-yourself investing6

    SEP IRA (Apply Now)
    Description
  • Appeals to eligible investors who::
    Are self-employed individuals or business owners with employees2

    Prefer a plan that is easy to set up and maintain
  • Minimum balance:
    None

    Some investments may have minimums associated with them
  • Online Access:
    Account access to trading, balances, and activity through online brokerage
    Contributions
  • Annual Maximum Contribution :
    Employer contributions only

    Total contributions to each employee's IRA cannot exceed the lesser of $46,000 for 2008 or 25% of pay
  • Catch-Up Provisions (for individuals age 50 and older):
    No
  • Contribution Deadline:
    The company's tax filing deadline, plus extensions.
  • Restrictions on Contributions:
    Employer contributions only

    Some employees may be excluded from this plan
  • Deductible Contributions?:
    Contributions are tax-deductible for the business, up to 20% of modified net earnings (self-employed) or 25% of salary (employees)
    Distributions
  • Taxation on Distributions:
    Same as traditional IRA

    Distributions are subject to current federal income taxes and a possible 10% federal tax penalty (if the participant is under age 59½)
  • Mandatory Distributions:
    Same as traditional IRA
    Set-up and Annual Account Maintenance Fee3
  • Set-up costs:
    None
  • Annual Fee:
    Self-Directed Brokerage IRA $50

    Ways to waive the fee54
    Investments
  • Choices:
    Full spectrum of investment choices, including:

    Mutual Funds (load and no-load)

    Stocks

    Bonds

    Options on stocks and common indexes

    FDIC-insured bank products (fixed-rate CDs and money market accounts)
  • Relationships:
    Professional assistance5 or do-it-yourself investing6

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    01/08 1107-69536

    1 The maximum compensation on which contributions can be based is $225,000 for the 2007 plan year and $230,000 for the 2008 plan year. For self-employed people, compensation means net business income.

    2 Employees may be excluded if they:

    -Have not worked for the company during three out of the last five years.
    -Have not reached age 21 during the year for which contributions are made.
    - Employees who are covered by a union agreement and whose retirement benefits were bargained for in good faith by the employees' union and you.
    - Nonresident alien employees who have received no U.S. source wages, salaries, or other personal services compensation from you.
    - Received less than $500 in compensation (subject to cost-of-living adjustments) during the year.

    3 Additional fees may apply.

    4 Ways to waive the Self-Directed Brokerage IRA fee:
    - Households with combined brokerage assets of $250,000 or more as of June 30, will have all annual brokerage account fees waived.
    - Any Investment (basic brokerage) Account, IRAs, and Coverdell Education Savings Accounts with mutual fund positions of $50,000 or more will receive a waiver of the account fee ($60 or $50). (This does not include money market funds, closed-end funds, and exchange traded funds.)
    - Any brokerage household designated as Wachovia Bank Private Advisory or Privileges as of June 30, or any client with at least $50,000 in DDA, CAP DDA, and/or Savings deposits, excluding time deposits (CDs), at Wachovia Bank as of May 31, will receive a waiver of the $60 account fee on any Investment (basic brokerage) Account(s), the $50 account fee on IRAs and the $20 account fee on Coverdell Education Savings Accounts. Wachovia Bank Select and Privileges relationships have a minimum of $125,000 in combined deposit, loan and/or investment balances. - A $25 minimum balance fee may be charged for accounts with less than $10,000.

    5 Professional assistance:
    A Wachovia Securities Financial Advisor can help you develop and stick to a long-term investment plan and can help you find suitable investments for your goals.

    A Financial Advisor can help you pursue three important goals:
    - Personalize your investments to fit your needs
    - Give you the advice to navigate through a sometimes confusing array of choices
    - Balance risk and reward with precision to help keep your investment plan on course

    6 Do-it-yourself investing:
    A variety of choices are available if you prefer to manage your investments yourself.
    - Receive prompt, low-cost executions on stocks, bonds, and options through Wachovia Securities Direct
    - Select from hundreds of no-load funds through Wachovia Securities
    - Place orders on your own with Wachovia Online Brokerage
    - Access current investment research reports 24 hours a day
    Securities and Insurance Products: Not Insured by FDIC or any Federal Government Agency; May Lose Value; Not a Deposit of or Guaranteed by a Bank or any Bank Affiliate Wachovia Securities is the trade name used by two separate, registered broker-dealers and non-bank affiliates of Wachovia Corporation providing certain retail securities brokerage services: Wachovia Securities, LLC, Member NYSE/SIPC, and Wachovia Securities Financial Network, LLC, Member FINRA /SIPC.

    Bank products, such as CDs and money market accounts, are offered by Wachovia Bank, N.A. Only deposit products are FDIC-insured.

    Wachovia Securities Statement of Financial Condition
    Audited - December 31, 2007
    Unaudited - June 30, 2008

    Withdrawals are taxed as ordinary income and may be subject to a 10% Federal penalty if taken prior to age 59 1/2.

    Retirement specialists, when registered, are registered with Wachovia Securities. Retirement specialists, whether registered or not, are employees of Wachovia Bank, N.A. Investment services are offered through Wachovia Securities, LLC member NYSE & SIPC, a registered broker-dealer and separate non-bank affiliate of Wachovia Corporation.

    Qualified Roth IRA distributions are not subject to state and local taxation in most states.

    Wachovia Securities does not provide legal, accounting or tax advice. Please consult with your own legal or tax advisors before making any decision that may have tax consequences.

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