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Traditional IRA

Setting aside money each year into an IRA can be a great way to help supplement your other retirement savings. A Traditional IRA at Wachovia Securities offers tax-deferred savings opportunities. You will not pay taxes on the earnings and in some case on the contributions, until distributions are taken from the account.

You should consider a Traditional IRA if:

You are eligible to deduct your contribution and you anticipate your tax rate at the time of distribution will be lower than your current tax rate.
If your income is over $116,000 (single) or $169,000 (joint), since you are not eligible to make a Roth IRA contribution.

But one of the biggest reasons investors choose a Traditional IRA over a Roth IRA is the opportunity for some investors to take a tax deduction on the IRA contribution, which may lower your current tax bill. (Investors under the age of 70 1/2 with earned income can still contribute to a traditional IRA even if they don't qualify for the tax deduction.)

You may qualify for a full or partial deduction of your Traditional IRA contribution in the following circumstances:

You and, if you are married, your spouse is not covered by an employer sponsored plan.
You as an individual are covered by an employer sponsored plan and:

Your MAGI for a single file is $53,000 - $63,000
Your MAGI for a joint filed is $85,000 - $105,000
Your MAGI for married filing separately is $0 - $10,000

If you as an individual are not covered by an employer sponsored plan and your spouse is covered by an employer sponsored plan and your MAGI is $159,000 - $169,000.

How to Open your Traditional IRA

You can apply online, using the button below.
Your initial investment will go into your choice of money market funds.
You can choose the investments yourself or get professional guidance from a Wachovia Securities Financial Advisor.
Either way, you can choose from a full range of investments, including stocks, bonds, and mutual funds from families like Fidelity, Vanguard, and Evergreen through Wachovia Securities, as well as bank products such as FDIC-insured CDs (up to $100,000 per institution) and money market accounts.
To speak to a Wachovia Securities Financial Advisor, call (866) 588-9606, 8:00am to 8:00pm ET, Monday through Friday, or use our Locator.

Contribution Limits¹

For year 2007, the limit is $4000 if you are under age 50, and $5000 if you are over age 50.

For year 2008 and thereafter, the limit is $5000² if you are under age 50, and $6000 if you are over age 50.

Other considerations with the Traditional IRA:

Any earnings and deductible contributions are subject to tax upon distribution.
Taxable distributions before age 59 ½ may be subject to a 10% penalty tax. Exceptions to the penalty include distributions due to death, disability, substantially equal periodic payments, eleigible medical expenses, certain unemployed individual’s health premiums, limited “first-time” home purchase, qualified higher education expenses or IRS levy. See your tax advisor for details before making any contributions.

Wachovia and Wachovia Securities are not tax or legal advisors. Be sure to consult with your own tax and legal advisors before taking any action that may have tax consequences.

Required Minimum Distributions must start at age 70 ½.²

Mutual funds are sold by prospectus. Please consider the investment objectives, risk, charges and expenses carefully before investing. The prospectus, which contains this and other information, can be obtained by calling your financial advisor. Read it carefully before you invest.

Evergreen Investment Management Company, LLC is a subsidiary of Wachovia Corporation and a separate affiliate of Wachovia Securities.

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To find a financial advisor or learn more:

Retirement Resource Center
(866) 588-9606
8:00am - 8:00pm ET
Monday - Friday

For questions on your existing account:
Wachovia Securities Service
(800) 669-2136
24 hours a day
7 days a week

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08/07 0707-57873

¹ Plus inflation adjustment in $500 increments beginning in 2009.

² You may delay your first distribution until April 1 of the year following the year you turn 70 ½. Thereafter, you must take all distributions no later than December 31 of each year. If you don't distribute the required amount for any given year, you may face a 50% penalty tax on the amount of your Required Minimum Distribution that was not taken.

Securities and Insurance Products: Not Insured by FDIC or any Federal Government Agency; May Lose Value; Not a Deposit of or Guaranteed by a Bank or any Bank Affiliate Wachovia Securities is the trade name used by two separate, registered broker-dealers and non-bank affiliates of Wachovia Corporation providing certain retail securities brokerage services: Wachovia Securities, LLC, Member NYSE/SIPC, and Wachovia Securities Financial Network, LLC, Member FINRA /SIPC.

This site is provided for your information and does not constitute tax advice. Please consult with your accountant or tax advisor for specific guidance. Withdrawals from an IRA made prior to age 59½ may be subject to a 10% IRS penalty in addition to ordinary income taxes.

Wachovia Securities Statement of Financial Condition
Audited - December 31, 2007
Unaudited - June 30, 2007

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To find a financial advisor or learn more:

Retirement Resource Center
(866) 588-9606
8:00am - 8:00pm ET
Monday - Friday

For questions on your existing account:
Wachovia Securities Service
(800) 669-2136
24 hours a day
7 days a week

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•Traditional IRA Fact Book

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