Through collaboration with our clients, FireLife’s multidisciplinary team of professionals will design, implement, and administer retirement plans for individuals and employer groups. The following information is a sample of plans we offer and is intended for informational purposes:

Individual Plans

Traditional IRA is an individual retirement plan that permits tax-deferred savings for employees under age 70 (1/2) with the following key features:

• Contributions are allowed regardless of the individual's adjusted gross income.
• Contributions may be deductible. Tax deductibility of contributions depends on salary level and whether the IRA owner participates in an employer-sponsored retirement plan.
• Earnings on both deductible and nondeductible contributions accumulate on a tax-deferred basis.
• Withdrawals made prior to age 59½ will be taxed as ordinary income and may be subject to an additional 10% tax.
• Annual limit (2006): $4,000 ($5,000 if age 50 or older). Contributions to a Roth IRA and a traditional IRA in aggregate cannot exceed the annual limit.
• Contributions must be made by April 15 to be considered a prior-calendar-year contribution.

Roth IRA is an individual retirement plan that permits tax-free earnings and distributions for employees with the following key features:

• Contributions are nondeductible, but qualified distributions are tax free.
• Permits tax-free and penalty-free withdrawals of earnings after five years.
• Permits tax-free and penalty-free withdrawals of contributions at any time.
• Contributions allowed after age 70½
• Annual limit: $4,000 ($5,000 if age 50 or older). Contributions to the Roth IRA and a Traditional IRA in aggregate cannot exceed the annual limit.
• Contributions must be made by April 15 to be considered as a prior calendar year contribution

Rollover IRA is an individual retirement plan for retirement assets rolled over from other eligible plans with the following features:

• Direct Rollovers: An eligible rollover distribution from an eligible plan that is made payable to the custodian of the accepting Rollover IRA.
• Indirect Rollovers: An eligible rollover distribution from an eligible plan that is made payable to you and is reinvested in a Rollover IRA within 60 days of receipt. Distributions from one IRA that are reinvested within 60 days to another IRA can only be made once in any one-year period. This rule applies separately to each IRA you own.

Business Plans

A SEP IRA (Simplified Employee Pension Plan) is a low-cost retirement plan for small business owners and the self-employed. In a SEP, you set up an IRA for each eligible employee and make tax-deductible contributions into each account. Earnings are tax deferred, some of the key features are:

• High contribution limits. With a SEP, you can contribute up to the lesser of 25% of compensation or $44,000 in 2006.
• Easy to set up and operate. No required IRS filings.
• Tax deduction. The deduction allowed for employer contributions can save your business money each year by reducing your tax liability.
• Flexibility. You decide amount and frequency of contributions, and you're not required to contribute every year.
• Immediate ownership. All contributions are 100% immediately vested.
• Participant-directing investing. Employees can create their own portfolios using any of our funds.

Savings Incentive Match Plan for Employees (SIMPLE IRA) is a payroll deduction plan that permits an employee to make pre-tax salary deferral contributions in addition to the employer's contribution. This program has the following key features:

• Inexpensive 401(k)-type plan for the small business owner.
• No 401(k)-type discrimination testing.
• Deductible employer contributions are made directly to employees' IRAs.
• Employer has the flexibility to choose between two contribution options.
• Employer contributions are mandatory.
• All contributions must be 100% immediately vested.

This program is reserved for Self-employed persons, partnerships, S-corporations1, C-corporations1, nonprofit, tax-exempt and governmental entities with 100 or fewer employees. Generally, the employer may not maintain another plan.

Profit Sharing Plan for discretionary annual contributions by the employer. Some key features with this plan are:

• Employers can vary the amount they contribute in a Profit Sharing Plan.
• Vesting schedule is determined by employer.
• Withdrawals are governed by the plan document and may be restricted.
• Employers may offer participant loans.

401(k) is a qualified plan that allows for employee pre-tax contributions. The value of a 401(k) investment grows tax deferred until withdrawn, when it's taxed as ordinary income. Some of the key features of this plan are:

• Permits pre-tax salary deferral contributions.
• Due to complicated discrimination testing and tax reporting, third-party administrative services are required.
• Employer contributions are tax deductible.
• Employer matching and Profit Sharing contributions are optional.
• Vesting schedule can be applied to employer contributions.
• Participant loans are available.
• Withdraws are governed and may be restricted by the plan.

403(b) is a pre-tax salary deferral plan for employees of hospitals, public schools, churches and other nonprofit organizations. Some of the key features are:

• Participants can make pre-tax salary deferral contributions.
• Permits higher contribution limits than Traditional IRAs.
• Distributions are not permitted prior to age 59½ except for death, disability, financial hardship, or severance of employment.