Three IRA choices available:

• Traditional IRA

  Anyone under the age of 701/2 who receives income compensation, or is filing jointly with a spouse who receives compensation, can open and contribute to a Traditional IRA. Beginning with tax year 2005, you can contribute up to $4,000 per year, and possibly more for those 50 years of age and older. Earnings grow tax-deferred until withdrawn, and contributions may be tax-deductible.

• Roth IRA

  Roth IRAs are available to anyone who receives income compensation, or is filing jointly with a spouse who earns compensation. Some income limitations apply to Roth IRAs with regard to maximum contributions. Those with adjusted gross incomes of $95,000 or less (single), and $150,000 or less (joint), can contribute to the maximum allowable amount of $4,500 for 2005, and $5,000 for 2006 and 2007. The maximum contribution amount decreases, however, with adjusted gross incomes between $95,000 and $110,000 (single), and $150,000 and $160,000 (joint). Regular contributions can be withdrawn tax and penalty-free at any time. After the account has been open for five tax years, earnings can be withdrawn tax and penalty-free for any of these reasons: age 591/2, disability, death, or a first-time home purchase.

• Education IRA (Coverdell Education Savings Account

  An Education IRA is meant to give a tax shield to savings for educational purposes. Anyone who has a modified adjusted gross income of $95,000 (single), or $190,000 (joint) can contribute the maximum amount of $2,000. Contributions to an Education IRA are considered to be a gift to the beneficiary of the account. These contributions are not tax-deductible. Only the beneficiary may make withdrawals from this account for qualifying elementary, secondary, and higher education expenses.