IRAs

Roth and Traditional IRAs

Roth IRA

To boost your retirement nest eggs, Roth accounts can be added to 403(b) and 401(k) plans. They give you the opportunity to invest after-tax funds in special accounts in which earnings will not be taxed until distribution. Roth accounts may be just what some plan participants, especially younger ones, need to help boost their retirement.

While Roth accounts may offer more administrative and communications challenges, there’s no reason to shy away from them with AIG Retirement as your provider. We have the expertise and services you need to offer you additional savings opportunities via Roth accounts.

A Roth IRA provides tax-free distributions after five years in the following circumstances: attainment of age 59½; death or disability; and first-time home purchase. The annual contribution limit is $5,000 in 2008 ($6,000 if age 50 or older). Your modified adjusted gross income (AGI) must be under $114,000 (single) or $166,000 (married, filing jointly) to participate in a Roth IRA. Contributions are phased out when your modified AGI is between $99,000 and $114,000 (single) and $156,000 and $166,000 (married, filing jointly).

Lifetime minimum distribution requirements do not apply to Roth IRAs.

Traditional IRA

In addition to tax-deferred growth, traditional IRA contributions may be tax deductible. Contributions are fully deductible if your AGI is within certain limits.

Securities and investment advisory services are offered by AIG Retirement Advisors, Inc., member FINRA, SIPC and an SEC-registered investment advisor.

AIG Retirement is the marketing name for the group of companies comprising AIG Retirement Advisors, Inc.; AIG Retirement Services Company; and The Variable Annuity Life Insurance Company (VALIC); each of which is a subsidiary of American International Group, Inc.

This information is general in nature and may be subject to change. Neither The Variable Annuity Life Insurance Company nor its financial advisors or other representatives give legal or tax advice. Applicable laws and regulations are complex and subject to change. Any tax statements in this material are not intended to suggest the avoidance of U.S. federal, state or local tax penalties. For legal or tax advice concerning your situation, consult your attorney or professional tax advisor.