Saving for Retirement with an IRA A great way to save for retirement is a Roth IRA or Traditional IRA! Contribution Limits... Annual Contribution Limit: $5,000 annual contribution limit for 2009 & 2010 (Your Adjusted Gross Income may affect the amount you can contribute. Please consult IRS Publication 590.) Investors age 50 and older: $6,000 limit for 2009 & 2010 (Considered a "catch-up" provision.) Spousal IRA: $5,000 for 2009 & 2010 (per individual) (Your Adjusted Gross Income may affect the amount you can contribute. Please consult IRS Publication 590.) Review the IRA Plan Booklet for details on contribution limits and income requirements. Making your IRA contribution is easy... To contribute to an EXISTING IRA: Send in a check ($100 or more) made payable to The Oakmark Funds and attach your IRA investment stub or write your IRA Fund and account number on the check. From January 1 to April 15, be sure to indicate the tax year of your contribution. To open a NEW IRA: • IRA Application • IRA Plan Booklet • Open an IRA online Not sure which Oakmark fund may be best for your IRA? Visit Fund Information to find out more. You can also check out recent performance. IRAs can help your retirement savings grow by allowing earnings to compound tax deferred or tax free until you withdraw them. A continued commitment through ongoing IRA contributions ensures that you'll take advantage of tax benefits every year! Your IRA options: Traditional IRA - Investments grow tax deferred and contributions may be tax deductible, depending on your income level and whether you participate in an employer-sponsored plan. Roth IRA - Investments grow tax deferred and qualified withdrawals are tax free. However, unlike contributions to the Traditional IRA, Roth IRA contributions are not deductible. Rollover IRA - If you are changing jobs or retiring and have an employer-sponsored retirement plan, such as a 401(k), pension, or profit-sharing plan, you'll want to ensure that your investments maintain their tax deferred status. A rollover IRA allows you to retain these tax advantages and investment control because you direct the assets to your investment of choice, such as stock mutual funds. By requesting that the assets be rolled directly into a rollover IRA - rather than taking a cash distribution - you avoid incurring taxes and penalties that could add up to 40% or more of your retirement savings. SEP IRA - Generally used for self-employed individuals or small businesses, a SEP IRA is a company-funded retirement plan where employers can make deductible contributions directly to accounts established for employees (or themselves). Earnings accumulate on a tax deferred basis, and contributions can vary each year or can even skip a year, since annual contributions by an employer are not required. Contribution limits are also generally higher than a Traditional or Roth IRA. SIMPLE IRA - Companies with 100 or fewer employees have the option to establish a Savings Incentive Match Plan for Employees (SIMPLE) IRA. Contributions by employers are required, and the plan does not require a minimum level of employee participation. Employees are also allowed to make contributions to these accounts. SIMPLE IRAs are easy to set up and maintain. See the IRA Plan Booklet for details.