A traditional IRA is an Individual Retirement Account established by the Tax Reform Act of 1986. The original IRA, or what was called a "Regular IRA", was created in 1975.

• IRAs were created to encourage individuals to save for retirement in a more permanent kind of account.

• Contributions to an IRA can be tax-deductable.

• Growth of the plan's value (as long as it remains in the account) can accumulated on a tax-deferred basis.

• The Internal Revenue Service has strict and somewhat complex rules on contributions and withdrawals. With some exceptions, there is a 10% penalty on withdrawals taken before the plan owner reaches 59 ½ years old.

• There are forced distribution requirements (Required Minimum Distributions or RMDs) based on age, which begin in the calendar year that the IRA plan owner turns 70 ½ . (The software will override specified distributions if they do not meet the legal Required Minimum Distributions.)

The Catalyst2 software currently works with traditional IRAs only, not a Roth nor any other types of IRAs. For specific rules and regulations on IRAs, please refer to http://www.irs.gov/pub/irs-pdf/p590.pdf or consult a tax specialist, attorney or financial advisor.

** Catalyst2 does not apply to Roth or other types of IRAs. **

All numerical values are estimates; examples are for illustrative purposes only and are based on hypothetical interest and tax assumptions. When considering asset reallocation, we suggest that all prospective users consult with a tax specialist, attorney, or financial advisor.