Waiting fifteen months to contribute can really add up over time. The following hypothetical illustration shows the difference in tax-deferred earnings potential between funding an IRA on January 1st of the current year, the earliest available funding, versus waiting until April 15th tax deadline of the following year, the latest you can fund your IRA.. Assumes a 7% rate of return. This calculation assumes the maximum contribution is made each year. The contribution limit is $4,000 in 2005 and increases to $5,000 in 2008. This calculation also includes the full catch-up contribution in the year the individual turns age 50 and every year thereafter (the catch-up is $500 in years 2002 through 2005 and increases to $1000 in 2006). Rate of return is calculated on an annual basis and is for illustrative purposes only; it does not represent any currently available investments.

Age at At Age 65, Total At Age 65, Total Potential Potential

Which Value (Annual Value (Annual Increaseed Increased

Funding April 15th January 1st Savings Savings

Started Contribution) Contribution) Individual Joint

25 $980,254 $1,047,689 $67,435 $134,870

35 509,072 545,778 36,706

45 269,548 289,487 19,939 39,878

55 86,954 93,308 6,354 12,708

60 25,351 27,623 2,272 4,544

Don't Forget : Annual Contribution limits are now set at $4000 per year and will increase to $5,000 in 2008. Investors who are 50 years and older are eligible for Catch-up Contributions of an additional $500 per year in 2002 through 2005, and increases to $1000 starting in 2006. Investors can add IRA Rollover assets at any time. Take Advantage of Early Contributions to an IRA to increase Your Potential for Tax-Deferred Growth, OR Tax Free Growth using a ROTH IRA.

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