Retirement Planning Accounts

One of the most important goals of sound financial planning is to achieve a secure retirement. After years of hard work, buying a home, perhaps raising a family and watching your children become independent, wouldn't it be nice to relax and reward yourself? Many experts estimate that you will need about 70-75% of your pre-retirement income to maintain the same standard of living after you retire.

Weiss Capital Securities is committed to helping our clients achieve a secure financial future. We offer a wide variety of products that offer the potential for growth such as stocks and mutual funds; stability and liquidity, including money market funds, U.S. Treasury bills (T-bills) and Certificates of Deposits (CDs), and a predictable income stream from fixed income securities, T-bills and other government bonds*. Open a retirement account with Weiss Capital Securities today and take the first step toward a more secure retirement.

Whether retirement is something in your distant future or right around the corner, planning for a more secure future is something that should be taken seriously. At Weiss Capital Securities, we offer a variety of retirement plans that will allow you to:

• save for retirement
• gain tax advantages
• choose amongst stocks, bonds, mutual funds and other investment vehicles
• earn interest on your cash balance

*Before investing in stocks, bonds and mutual funds, you should consider your tolerance for risk and ability to assume the loss of capital as market volatility can significantly impact performance. The results of an investment made today may differ substantially from historical performance. When choosing a mutual fund, you should consider the investment objectives, risks, charges and expenses before investing. The fund's prospectus contains this and other important information. U.S. Treasury bills and bonds are backed by the full faith and credit of the U.S. government. However, if sold during a period of rising interest rates the value of a U.S. government bond, as well as a corporate bond, is likely to be less than if the bond is held until maturity.)

IRA Accounts
Traditional IRA	Roth IRA	Rollover IRA	SEP IRA	SIMPLE IRA
A retirement plan that allows tax- deferred earnings and deductible contributions.	A retirement plan that allows after -tax contributions, but qualified withdrawals are tax-free.	A retirement plan that provides for an employee to transfer assets from a former employer-sponsored plan such as a 401(k).	A retirement plan that allows an employer to make contributions toward employees' retirement plans.	A retirement plan small employers can set up for the benefit of their employees, allowing matching contributions.

What is a Traditional IRA?

Anyone who is under age 70½ and has earned income can contribute to a Traditional IRA and defer taxes until funds are withdrawn from the account, thus giving your investments the opportunity to compound faster.

Contributions may be tax deductible, all or in part, depending on your adjusted gross income* (AGI) and whether or not your spouse participates in a retirement plan at work (please consult your tax advisor to determine your eligibility and tax benefit).

Maximum Contribution Amounts
Year	Contribution Limit
2005	$4,000
2006	$4,000
2007	$4,000
2008	$5,000

Note: if you are age 50 or older you can make a "catch-up" contribution of an additional $500 in 2005 and $1,000 in 2006-2008

All earnings and deductible contributions are taxed like ordinary income. If you take out money before you turn 59½, you may be subject to a 10% early withdrawal penalty, unless the amount withdrawn is used for certain qualified distributions, including:

• Paying for certain college expenses
• Purchasing a new home (restrictions may apply)
• Penalty-free withdrawals on a series of payments
• Paying for certain major medical expenses

Once you've reached the age of 59 ½ you can start taking distributions out without early withdrawal penalties. At age 70 ½ you're required to begin taking mandatory distributions.

What is a Roth IRA?

A convenient way to save for retirement, the Roth IRA may offer greater tax savings and withdrawal flexibility than a Traditional IRA. There are no mandatory annual distribution requirements, and you may continue contributing to your Roth IRA beyond age 70½.

A Roth IRA can be an excellent alternative to a Traditional IRA. However, not everyone is eligible to contribute to a Roth IRA. To be eligible you must:

• Have compensation income for the tax year and
• Your "modified adjusted gross income (MAGI) must not exceed certain limits (see chart below)

Although contributions to a Roth IRA are not deductible, when earnings are distributed they are free of federal income or penalty taxes if certain requirements are met. (Withdrawals of contributions made to a Roth IRA are not subject to federal income or penalty taxes.)

For earnings to be withdrawn tax-free, they cannot be distributed until five tax years have passed since the first day of the tax year in which you made your initial Roth IRA contribution (including a conversion contribution from a Traditional IRA).

For 2005, eligible individuals can generally contribute up to $4,000, or 100% of compensation, whichever is less. An individual's eligibility to make Roth IRA contributions phases out at certain levels of "modified adjusted gross income". (Please see table below for more details).

If you would like to find out more about rollovers or how to roll over an IRA to Weiss Capital Securities, please consult a Weiss Capital Securities representative.

How much are you Eligible to Contribute to a Roth IRA for the 2007 tax year?
Federal Income Tax Filing Status	Modified Adjusted Gross Income* (MAGI)	Maximum Amount You can Contribute for 2007 (not including catch-up contributions)
Single	Up to $95,000	$4,000
	$95,001 - $109,999	Less than $4,000
	$110,000 or more	Not Eligible
Married, filing jointly (MAGI numbers reflect both spouses' combined incomes)	Up to $150,000	$8,000 ($4,000 per IRA)
	$150,000 - $159,999	Less than $8,000 ($4,000 per IRA)
	$160,000 or more	Not eligible
Married, filing separately	Up to $9,999	Less than $4,000
	$10,000 or more	Not eligible

*Your gross income from all sources (including wages, salaries, tips, taxable interest, dividend income, alimony, capital gains [losses], increased and decreased by certain adjustments (not including itemized deductions). Consult with your tax advisor for additional information.

Comparing IRAs

Since their introduction in 1997, Roth IRAs have become very popular among investors. Why? Because any assets can grow tax free if you just follow a few SIMPLE rules. The table below compares Roth IRAs and Traditional IRAs.

If you would like to learn more about which type of IRA might be most appropriate for you, our comparison table provides some basic background information. If you are interested in converting your Traditional IRA to a Roth IRA, you may want to use this checklist to see if a conversion may be right for you. ¹ Before converting a Traditional IRA to a Roth IRA, we recommend that you consult a tax professional.

Comparing IRAs
	Traditional IRAs	Roth IRAs
Key Features	You can make contributions even if you participate in a 401(k) or other type of company retirement plan, regardless of how much money you make. Your contributions may be tax deductible depending on your income and company retirement plan participation. You can use the money you've saved to help purchase a home, pay for college, or pay major medical expenses.	You can make contributions even if you participate in a 401(k) or other type of company retirement plan. Contributions can be withdrawn at any time, for any reason, without penalty. Withdrawals after age 59½ are tax- and penalty-free, as long as the money has been in the account for at least five years. You can use the money you've saved to help purchase a home, pay for college, or pay major medical expenses.
How much can you contribute?	For tax year 2007: $4,000 ($8,000 for married couples into two separate IRAs) or 100% earned income, whichever is less. If you are over 50, you can contribute an additional $500 of earned income to each IRA.
Who can contribute?	Anyone over 18 with earned income.	If you are over 18, earning between $95,000-$110,000 (single) or $150,000-$160,000 (married, filing jointly) you can make only a partial contribution.
Contribution Deadline	For Tax Year 2007 IRAs: April 17, 2008
How much can you deduct?	See discussion above and consult your tax advisor	Contributions to a Roth IRA are not tax deductible
Is there an age when I must stop contributing?	70 ½	No limit
Does the IRA offer tax-advantaged growth?	Yes, money grows tax deferred.	Yes, money grows tax free.
When can I withdraw funds without penalties?	Beginning at age 59½. Earlier if used for home purchase, college expenses or major medical expenses.	Earnings can be withdrawn without penalty after the later of five years or when you reach age 59 ½.
When must I begin withdrawing money?	Age 70 ½	No requirement
How are withdrawals taxed?	Ordinary income taxes payable at withdrawal. Withdrawals made before you reach age 59 1/2 may be subject to federal income tax and a 10% IRS penalty	Contributions and/or earnings can be withdrawn tax free if the account has been open for five years and you have reached age 59 ½. Earnings withdrawn before both of these criterion are met may be subject to federal income tax and a 10% IRS penalty.

1. Please note that our Roth to Traditional checklist is intended to serve as an educational tool, not investment or tax advice. Your circumstances are unique. Therefore you should consult a tax professional if you feel you need more personal advice.

Rolling over Your IRA

By rolling over money and assets to a Weiss Capital Securities IRA, you've made an important decision to take control of your financial future. Invest the assets within your IRA the way you want, using our wide range of investments options.

What is an IRA rollover?

A rollover is a tax-free movement of cash or other assets from one retirement plan to another. If you choose a standard rollover, (as opposed to a direct rollover) you will need to report the transaction to the IRS. A standard rollover is a reportable transaction whereby, you the IRA holder, actually takes possession of the money or assets before rolling it to Weiss Capital Securities. A direct rollover is reported on both forms 1099R and 5498. During the transfer process, you do not hold the money at any time. Weiss Capital Securities' clearing firm, Pershing, will report the transaction directly to the IRS on form 5498.

Rolling over your retirement assets from another custodian to Weiss Capital Securities

In a rollover transaction, money and assets typically come from either a company plan, or an IRA at another institution. Use the information below to find out which process applies to you. If you have any questions, give us a call at 1-800-242-8092. A retirement specialist is waiting to help you.

Transferring cash from a company plan

If you're moving cash from your former employer's retirement plan to your Weiss Capital Securities Rollover IRA account, just follow these simple steps:

1. Open a Weiss Capital Securities Rollover IRA
2. Tell your former employer's Plan Administrator that you want to sell your Plan assets and roll the cash over to Weiss Capital Securities Rollover IRA.
3. Obtain and fill out any paperwork required by your former employer.
4. Give your Weiss Capital Securities Rollover IRA account number to the Plan Administrator
5. Ask your Plan Administrator to give you a check made payable to Weiss Capital Securities, and to print your name and Rollover IRA account number clearly on the check. Then simply mail the check to Weiss Capital Securities at the following address:
   
   Weiss Capital Securities, Inc.
   7111 Fairway Drive, Suite 102
   Palm Beach Gardens, FL 33418
6. By depositing the check yourself, you can make sure the correct information is printed on the check. You also know exactly when the funds are submitted. If the Plan Administrator sends the check to directly to Weiss Capital Securities, be sure to provide the above address. In this situation it can be difficult to know exactly when the funds will be deposited, so ask to be notified by the Plan Administrator when the check is mailed.
   
   Important: Tell the Plan Administrator to include your name Weiss Capital Securities Rollover IRA account number on the check.

Rolling over stocks, bonds or mutual funds from a company plan

If you want to roll over non-cash assets, such as stocks or mutual funds, from your retirement plan to your Rollover IRA, follow these steps:

1. Open a Weiss Capital Securities IRA
2. If you're rolling over mutual funds, confirm that Weiss Capital Securities can accept those securities by contacting a Weiss Capital Securities representative. If the funds you own are not acceptable, you'll have to redeem your shares for cash before executing the rollover. (You may be required to liquidate your assets prior to rolling over your IRA.)
3. Tell your former employer's Plan Administrator that you want to roll over your plan assets to a Rollover IRA. Plans are not required by law to permit rollovers of non-cash assets.
4. Fill out any paperwork required by your former employer. Give your Weiss Capital Securities Rollover IRA account number to the Plan Administrator.
5. Instruct the Plan Administrator to forward the securities to the following address:
   
   Pershing
   One Pershing Plaza
   Jersey City, NJ 07399
   
   Important: Tell the Plan Administrator to include your name Weiss Capital Securities Rollover IRA account number on the check.

Note: Unlike a rollover of cash, which is typically completed within four to six weeks, a rollover of securities can take from several weeks to several months, depending on the type of securities involved, how the securities are held and your former employer's internal procedures.

To check the status of your rollover, ask your company Plan Administrator to let you know when the securities are forwarded to Weiss Capital Securities. Also periodically check to see when the securities are deposited.

Processing a rollover if you already received a check

If you have already changed jobs and received a check made payable to you from your former employer, the IRS has required your former employer to withhold 20% of the money you took out of your retirement plan. This means, if withdrew $50,000 from your account, you'd get a check for $40,000. The remaining $1,000 will be applied to your tax liability for that tax year. You still can move your assets into a Weiss Capital Securities Rollover IRA, and avoid substantial taxes and penalties, but you do have to take the following steps within 60 days.

1. Close your current IRA account. Keep a record of the date, since it opens the 60-day window for completion of the rollover.
2. Open a Weiss Capital Securities IRA, if you don't already have one.
3. Deposit the distribution check to your Weiss Capital Securities IRA account. Write a check payable to Weiss Capital Securities for the full amount that you took out of the company plan, not just the 80% that appears on your distribution check. If you just roll over the amount of the check, the remaining 20% will be subject to taxes and penalties. Don't worry you will get the 20% you put in back on April 15.
4. Mail the check to the address below, allowing enough time for it to arrive before your 60 days are up:
   
   Weiss Capital Securities, Inc.
   7111 Fairway Drive, Suite 102
   Palm Beach Gardens, FL 33418

Note: Be sure to clearly print your name and Rollover IRA account number on the front of the check

What is an IRA for Minors?

An IRA for Minors is either a Traditional or Roth IRA that is opened for the benefit of a child under the age of 18 who has earned income. The account is opened by the minor's custodian, typically a parent or legal guardian, who must also sign the application. The IRA for Minors has all of the same benefits of either the Traditional or Roth IRA, depending on which type of IRA is established.

How much does a Weiss Capital Securities IRA cost?

Weiss Capital Securities charges $xx per year to serve as the custodian for your IRA. Additionally, you will pay the normal commissions or sales charges on the investments you elect to purchase within your IRA. Please keep in mind that not all securities are allowed to be purchased in an IRA.

An IRA is a great way to provide for your retirement. We recommend that you confer with your tax advisor to determine which IRA is best for you. Once you decide which IRA is most suitable, Weiss Capital Securities will help make the entire investment process easy and convenient through our online trading and investment research services. To learn how to open a Weiss Capital Securities account call a Weiss representative at 800.242.8092.

What is a SEP IRA?

A Simplified Employee Pension IRA (SEP IRA) is a retirement plan that allows an employer to make contributions towards employees' retirement, without becoming involved in more complex retirement plans. SEPs are suitable for businesses of any size, including sole proprietorships and function essentially as a low-cost retirement plan. A business that establishes a SEP IRA:

• Cannot have any other retirement plan
• Must file form 5305-SEP or adopt a prototype SEP

What is a Beneficiary IRA?

A Beneficiary IRA, sometimes referred to an inherited IRA allows a spouse or non-spouse beneficiary of a Traditional, Roth, rollover, SEP IRA or SIMPLE IRA to keep his or her inherited IRA assets tax deferred until the IRS requires the funds in the inherited IRA be distributed.

When the account holder dies, a spouse beneficiary may transfer the assets into a Beneficiary IRA, complete a spousal transfer and treat the assets as his/her own or take a distribution from the IRA. A non-spouse beneficiary may transfer the assets into a Beneficiary IRA in his/her own name and generally continue taking distributions on the same schedule that applied to the original account holder.

Who's Eligible to Open a Beneficiary IRA?

Anyone who has inherited a Traditional, Roth, Rollover, SEP IRA or SIMPLE IRA is eligible to open a Beneficiary IRA, regardless of his or her age.

What are the Tax Advantages?

Traditional IRAs continue to grow tax deferred until distributed as required by the IRS. Earnings in a Roth IRAs accumulate tax-free provided certain conditions are met (see earlier discussion about Roth IRAs).

Withdrawal choices vary based on the original account holder's age at death, who the beneficiary is (i.e., spouse, non-spouse, trust or estate) and the type of IRA inherited. For example, distributions from a Traditional IRA are taxed at the account holder's applicable income tax rate at the time of distribution. Withdrawals from a Roth IRA are tax free if the account has been open for five year. It is important to note, however, the choices you make can have serious tax consequences and we recommend that you consult with your tax advisor before beginning a distribution program.

What is a SIMPLE IRA?

A SIMPLE IRA is a tax-deferred retirement plan that employers can adopt if they had fewer than 100 employees, who earned $5,000 or more in compensation from the employer in the previous year.

To be eligible to adopt a SIMPLE IRA, an employer cannot maintain or contribute to any other qualified retirement plan or SIMPLE IRA. Employees can make pre-tax deferrals of their regular compensation through a salary reduction arrangement, subject to certain limits.

The employer must contribute either matching or non-elective contributions annually at certain prescribed levels. Contributions and any investment earnings grow tax deferred until withdrawn, at which time they generally are subject to federal income tax.

Distributions made prior to the employee reaching age 59½ are generally subject to a 10% federal tax penalty, which can escalate to 25% if the distribution occurs before the employee has participated in the salary reduction arrangement for two years.

Contribution guidelines

Employees can elect to make pre-tax salary-reduction contributions of up to $10,000 in 2007, provided these contributions do not exceed 100% of the employee's annual compensation. Employees age 50 and over also can make catch-up contributions on a pre-tax basis of up to $2,500 in 2007. Both contribution limits are indexed for inflation after they reach their statutory maximums.

The employer generally must send employee salary-reduction contributions to an employee's SIMPLE IRA account by the 30th day after the last day of the month in which the amounts otherwise would have been payable to the employee as cash compensation. If employee salary-reduction contributions can be segregated from the employer's general assets before this deadline, however, they must be contributed to employees' SIMPLE IRA accounts as soon as they can be segregated. For example, if salary-reduction contributions are withheld from employees' paychecks and the employer has a bi-weekly payroll period, the employer generally should be able to segregate the salary reduction contributions earlier than the end of the 30-day period.

Employer

The employer must make a statutorily required contribution annually. The employer has two options available to satisfy this requirement. It can make a dollar-for-dollar matching contribution on all employee salary-reduction deferrals up to 3% of each employee's annual compensation. If the employer chooses this option, it can choose to match a lower percentage of compensation (but not less than 1%) in at most two years in the trailing five-year period.

Alternatively, the employer can satisfy its contribution requirement by contributing to each eligible employee's account (without regard to the employee's level of salary-reduction contributions) an amount equal to 2% of the employee's annual compensation. In determining the required annual employer contribution for 2007, only the first $210,000 of each employee's compensation is counted. Employer contributions for a taxable year must be made by the employer's federal income tax return filing deadline, including extensions.

Eligibility and Benefits

An eligible employer generally can cover any employee under a SIMPLE IRA. A SIMPLE IRA plan must cover all employees who received at least $5,000 in compensation from the employer during any two previous years and are reasonably expected to receive at least $5,000 in compensation in the current year. Employers also can exclude certain types of employees, such as union employees, from participation. (Please see IRS Publication 560 for more details.)

Plan Establishment

An employer can establish a SIMPLE IRA by completing IRS Form 5304-SIMPLE (if employees are allowed to select the financial institution that will receive their SIMPLE IRA contributions) or IRS Form 5305-SIMPLE (if all contributions initially must be deposited with a specified financial institution). (Neither form is filed with the IRS.)

Employers also can adopt an IRS-approved prototype document. Typically, from the employer's perspective, this is the only paperwork involved. The financial institution usually handles the other paperwork, such as preparing IRS Form 5498, which provides contribution information for each employee and IRS Form 1099-R, which is used to report distributions.

The general due date for establishing a SIMPLE IRA for a year is October 1. If the employer previously maintained a SIMPLE IRA, however, the plan must be established no later than January 1. Employers that come into existence after October 1 of a year and before January 1 of the following year, however, may establish a SIMPLE IRA as soon as is administratively feasible after they start business. SIMPLE IRAs cannot be established with a retroactive effective date.

Compare Business Retirement Plans
Feature	SEP IRA	SIMPLE IRA
Account Minimums and Maximums	There are no minimum initial deposit or balance requirements Maximum annual contributions of 25% of compensation per employee2 (up to $210,000) or up to $42,000 annually, whichever is less	There are no minimum initial deposit or balance requirements Maximum annual contributions of $10,000 by employee plus $10,000 employer match. Additional $2000 is allowed if employee is age 50
Account Features	Tax-deferred growth potential Flexible contributions for employers Easiest plan to administer among the different plan options	Business and personal tax savings for employer Personal retirement savings for employees Contributions reduce current taxable income Cost-effective plan for small businesses Both employer and employee make contributions to the plan
Eligibility Requirements	Self-employed income earner or small business owner	A business that employs 100 or fewer employees A business that does not maintain another qualified plan

Note: Money you put in a traditional IRA is generally tax deductible - unless you're an active participant in a qualified employer plan such as a 401(k) or 403(b). In that case, for 2007, your traditional IRA contribution is fully deductible if your AGI is $50,000 or below (partially deductible between $50,000-$60,000 for singles). The phase-out range for deductibility is $70,000-$80,000 for married filing jointly ($150,000 limit for the non-participant spouse of an active participant, when filing jointly).

The AGI phase-out range for Roth IRA eligibility remains unchanged at $95,000-$110,000 for singles and $150,000-$160,000 for married filing jointly.

Finally, a new rule took effect in 2005 for those taking required minimum distributions from their retirement accounts: You no longer need to include your Required Minimum Distribution (RMD) for the purpose of calculating the $100,000 modified adjusted gross income (MAGI) limitation on the conversion of a traditional IRA to a Roth IRA.

What is a 401(k) Plan?

A 401(k) plan allows eligible employees to contribute a portion of their salary to a retirement plan. Employers contribute either matching or non-elective amounts to the plan on behalf of eligible employees. Employer contributions are tax deductible and employee contributions are excluded from their income for federal income tax purposes.

Plan Eligibility

Sole proprietorships, partnerships, limited liability corporations (LLCs), or incorporated businesses, including subchapter S corporations, may establish a 401(k) plan.

All eligible employees must be allowed to participate in the 401(k). An eligible employee is any employee who:

• is at least 21 years old
• has performed one year of service and worked 1,000 hours in the year beginning with the date of hire.

Note: An employer can establish less restrictive eligibility requirements than the ones listed above, but not more restrictive ones.

Vesting

Vesting is the participant's ownership in the value of his/her retirement account or benefit. The employer can choose from many available vesting schedules. The schedule selected applies to all employees.

Tax Advantages

• Employer contributions are tax deductible for the employer - up to 25% of compensation of all participants.
• Employee elective deferrals are excluded from the employee's income for federal income tax purposes.
• Tax-deferred growth potential is possible - any investment earnings grow tax deferred until withdrawn.

Plan Deadline

The deadline to establish a 401(k) plan is the last day of the fiscal year of the business. For calendar year businesses, this deadline is December 31. However, the plan should be established as early in the year as possible to allow employees to take full advantage of elective deferral.

Contribution Flexibility

The employer may elect a fixed or discretionary matching contribution formula.

• A discretionary profit sharing contribution may also be made to the plan, subject to deductibility limits (25%).

What is an Individual 401(k)?

The Individual 401(k) plan was created specifically for the small, owner-only business. The business owner has the ability to contribute considerably greater contributions to this type of plan than other retirement plan options available. The contributions are tax deductible to the business, and employee contributions are excluded from their income for federal income tax purposes.

Plan Eligibility

• Sole proprietorships, partnerships, limited liability corporations (LLCs), or incorporated businesses, including subchapter S corporations, may establish an Individual 401(k) plan.
• Designed for businesses with no common-law employees or only employees that can be excluded, including any employee who is under 21 years old, or has worked less than 1,000 hours in the year beginning with the date of hire.

Vesting

Vesting is the participant's ownership in the value of his/her retirement account or benefit. All contributions are 100% vested immediately.

Tax Advantages

• Employer contributions are tax deductible for the employer - up to 25% of compensation.
• Elective deferrals can be excluded from the employee's income for federal income tax purposes.
• Tax-deferred growth potential is possible - any investment earnings grow tax deferred until withdrawn

Plan Deadline

The deadline to establish an Individual 401(k) plan is the last day of the fiscal year of the business. For calendar-year businesses, this deadline is December 31.

Contribution Flexibility

Contributions are flexible and no annual contribution is required.

• Employer discretionary contributions can vary each year, from 0-25% of compensation, up to a maximum.
• Employee salary deferrals are elected by the business owner

What is a 403(b) Plan?

A 403(b) allows employees of educational institutions and certain organizations to make pre-tax contributions towards their retirement savings. Contributions and any investment earnings in a 403(b) grow tax deferred until withdrawal (assumed to be retirement), at which time they are taxed as ordinary income.

Eligibility Requirements

• You must be an employee of a public school system or an organization under Section 501(c)(3) of the Internal Revenue Code, including but not limited to the following: non-profit hospital, religious organization, humane society, social welfare agency, charitable institution, museum, symphony orchestra, zoo, library or public university
• Your employer must make a 403(b) plan available to employees

Contribution Flexibility

• Elective deferral contributions, which are deducted from employee paychecks on a pretax basis.

Elective Deferral Contribution

With a 403(b) plan, you invest part of your income for your future via a salary reduction agreement. Your employer will provide you a list of approved vendors where your contributions can be directed.

Tax Advantages

A 403(b) account is a cost-effective way to save for retirement by contributing a percentage of your salary to an account you control.

• 403(b) contributions are made on a pre-tax basis, which reduces a participant's current taxes. For example, a contribution of $100 a month could reduce current federal income taxes by roughly $25/month (assuming a 25% marginal tax bracket).
• Dividends, interest and capital gains accumulate in a 403(b) account on a tax-deferred basis.

Distributions are taxed as ordinary income, which may be at a lower rate after retirement.

What are the Contribution limits for 2007 for Retirement Plans?
Type of Plan	Contribution Limit	Catch-up Contribution
Traditional IRA, Roth IRA and Beneficiary IRA	$4,000	$500
SEP IRA	20% of net self-employment income, up to $42,000	None
SIMPLE IRA	$10,000	$2,500
401(k), 403(b) and 457	$15,500	$5,000
Individual 401(k)	20% of net self-employment income plus $14,000, up to $42,000	$4,000