Traditional IRA

With a Traditional IRA, you defer paying taxes on your retirement earnings until you withdraw the money — when you'll probably be in a lower tax bracket and may lose less to taxes as a result!

In addition, the Traditional IRA allows taxpayers who meet certain income criteria to deduct IRA contributions from current income.

Fully Deductible Contributions

• If you are not covered by an employer-sponsored plan and you are under 70 1/2, you may deduct 100% of your contributions, which may be no more than $2,000 of your compensation, whichever is less, from your income at tax time.



• If youare covered by an employer-sponsored plan, but meet the following income criteria, you may deduct 100% of your contributions, which may be no more than $2,000 of your compensation, whichever is less, from your income at tax time.

Maximum Modified Adjusted Gross Incomes** for Full Deductibility Income limits will increase incrementally until the years 2005 and 2007
Filing Status	Filing Singly	Filing Jointly
Current/1998	up to $30,000	up to $50,000
End of transition period (yr. 2007)	up to $50,000 (yr. 2005)	up to $80,000 (yr. 2007)

Partially Deductible Contributions

• If you are covered by an employer-sponsored plan, but meet the following income criteria, you may deduct part of your contributions at tax time.

Maximum Modified Adjusted Gross Incomes for Partial Deductibility Income limits will increase incrementally until the years 2005 and 2007
Filing Status	Filing Singly	Filing Jointly
Current/1998	$30,000 - $40,000	$50,000 - $60,000
End of transition period (yr. 2007)	yr. 2005 $50,000 - $60,000	yr. 2007 $80,000 - 100,000

To see how the Traditional IRA compares to the Roth IRA, click here.

This information is only an overview of IRA matters. Because the laws governing IRAs are so complex, please consult your tax adviser. This information is not intended to provide tax or other legal advice. In addition, this information only addresses the federal income tax aspects of IRAs and is not intended to address the state or local tax aspects. Please consult your tax adviser about state and local taxes.

For more information about an Bishop Street Funds No Annual Fee Traditional IRA, contact your financial consultant or call 1-800-262-9565.

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