|
|
How to get the most
out of your IRA...in a nutshell. |
| Contribution limits for all IRA owners
Catch-up
contributions for IRA owners over the age of 50
What's
in it for you?
Get
Started Now!
|
 Did
you know that you can now contribute
more to your IRA?
Congress has made it easier than ever to accumulate retirement savings in a
Tradition or Roth IRA by continuing to increase the annual contribution
limits.
|
|
2006 annual
contribution limits for both Traditional and Roth IRAs
are $4,000, and will continue to increase over the next
several years according to this schedule:
| Tax
Year |
Annual
Contribution Limit |
| 2005
through 2007 |
$4,000 |
| 2008 |
$5,000 |
| 2009
and thereafter |
$5,000
plus possible cost-of-living increases in $500
increments |
|
|
|
| |
|
|
Additionally, now
Traditional and Roth IRA owners who attain age 50 by the close of
the taxable year are eligible to make an additional contribution,
called a "catch-up" contribution, as outlined below:
| Tax
Year |
Catch-Up
Contribution |
| 2002 through 2005 |
$500 |
| 2006 and
thereafter |
$1,000 |
|
| |
|
|
| Increased annual
contribution limits can help you accumulate more for your retirement
over the long term. The example below illustrates the significant
impact that the new contribution limits could have on the value of
your IRA.
Imagine you contribute
the maximum contribution for each year starting in 2005,
$4,000 per year for two years, $5,000 per year for the
remaining years, to both a tax-sheltered IRA and to
a regular taxable account. Our example will assume you
are in a 27% tax bracket, that you withdraw funds from
the taxable account to pay the tax on earnings, and
you earn an 8% annual return on each investment. Amazingly,
the tax-sheltered account ends up with $162,420 more
than the taxable account after 30 years!
|
|
| |
0
Years |
10
Years |
20
Years |
30
Years |
| Tax-Deferred |
$4,320
|
$68,702
|
$220,756
|
$549,028 |
| Taxable |
$4,240
|
$62,748
|
$179,919
|
$386,608 |
|
|
This graph illustrates
how the tax-sheltered status of an IRA affects asset
growth. Each investment represents a $4,000 or $5,000
contribution each year to either a tax-sheltered account
or a regular taxable account, a 25% tax bracket and
a hypothetical 8% annual return. The examples are hypothetical.
Performance shown in chart does not represent the performance
of any specific investment. Westcore believes the assumed
8% annual return to be a reasonable growth rate, but
no assurance can be given that this rate will be achieved.
You may make more or less than the accumulation shown,
depending upon the investment you select and actual
profits.
|
|
|
| The sooner you begin
taking advantage of the increased contribution limits, the longer
your assets will have to grow tax-sheltered. For more information,
call a Westcore Investor Service Representative at 1-800-392-CORE
(2673) or invest@westcore.com.
Use
Westcore's Automatic Investment Plan* to fund your IRA!
An investment of only $250 per month adds up to the new $3,000
annual contribution limit.
*The Westcore Automatic Investment
Plan does not assure a profit and does not protect against loss in
declining markets. This material must be accompanied or preceded by
a prospectus. Please read it carefully before investing.
This information should not be construed as
investment or tax advice. Investors must consider their own
situation before making an investment decision.
An investor should
consider investment objectives, risks, charges and expenses
of the Fund(s) carefully before investing. Click here
for a prospectus,
which contains this and other important information.
Please read the prospectus carefully before investing.
Westcore Funds are
distributed by ALPS Distributors, Inc. |
|
Fund
Information | Invest
with Westcore | Retirement
Center | Investor Education
| Shareholder Services
| Westcore News
Financial Advisors
| Terms of Use | Home
| This
web site and any software, graphic image, data and other non-text based
materials available through this site are the proprietary property of
Westcore Funds and/or third parties. Any use of the Westcore Funds name,
or the text or graphic materials contained in this web site is prohibited.
|
|
|
|
