Individual Retirement Plans
with the Timothy Plan family of funds
In addition to employer/company plans, there are "tax-advantaged" accounts designed specifically to help individuals save for retirement. Depending on the account you select, you may defer taxes on principal and/or earnings, or allow for tax-free withdrawals. Even if you are a participant in an employer-sponsored plan, you may want to consider supplementing those contributions with one or more of the plans below.

The following chart may help answer some questions concerning the differences, similarities and benefits of a Traditional IRA and Roth IRA.  Please read the Traditional, Roth and SEP IRA Kit for more complete information.  Before you invest, please download the prospectus for more complete information, including sales charges and expenses.  Please read it carefully before investing or sending money. You will want to keep a copy of the document for your files.  
Questions Traditional  Roth
How do the tax advantages compare between a Roth & Traditional IRA? An IRA has an immediate tax advantage by reducing your taxable income, and growth is tax deferred. No immediate benefit, but based on current statutes the Roth grows tax exempt.
What is the difference between tax deferred and tax exempt? Tax deferred means you pay taxes on the money you contributed into the IRA and the growth when you take it out of the IRA after you retire. Tax exempt means that based on current rules, you will not be required to pay any taxes on the money you take out of your Roth IRA.
Can anyone do an IRA? Anyone may do an IRA, but there are income limits for being able to deduct contributions from your current income. There are income limits for participating in 
Roth IRA’s.
May I do both a Roth and a Traditional IRA? You may, but the maximum is applied to the combination of the two. You may, but the maximum is applied to the combination of the two.
When may I take out my money? For all intents and purposes you may begin distribution as early as when you attain age 59½.  There is a holding period after which you may take your principal without any penalty. For all intents and purposes, you may begin distribution of growth as early as when you attain age 59½.
There is a penalty for early withdrawals. Are there exceptions? If you are age 59½ or older. If you become disabled. For a first-time home purchase ($10,000 life-time limit). For medical expenses that exceed 7.5% of your AGI. For qualifying education expenses. For systematic periodic payments. If you are age 59½ or older. If you become disabled. For a first-time home purchase ($10,000 lifetime limit). For medical expenses that exceed 7.5% of your AGI. For qualifying education expenses. For systematic periodic payments.
Is there a time when I am required to take my money out of my IRA? Yes. You must begin a distribution by April 1st following the year you reach age 70½. No. You may keep your Roth as long as you wish.
If I have another IRA may I combine it with the one I am considering at the Timothy Plan? Probably. You need to consult your financial consultant to make sure you may do a transfer. Probably. You need to consult your financial consultant to make sure you may do a transfer.
May I move my money from a qualified retirement plan? This is called a rollover. If you are still employed by the company where the qualified plan is, you may not be able to rollover. If you no longer work there the chances are you may do a rollover. First roll to a traditional IRA, and then convert it.
If I have a traditional IRA may I change it to a Roth? Yes, if your income is within the qualifying range. It is called a conversion. Be aware, though, that the converted amount is added to your taxable income in the year you do the conversion. Yes, if your income is within the qualifying range. It is called a conversion. Be aware, though, that the converted amount is added to your taxable income in the year you do the conversion.
My spouse is not working. Is there anything we can do to build my spouse’s retirement program? Yes. Even if your spouse is not gainfully employed, if your income qualifies and you file a joint tax return, your spouse may do an IRA.
 		Yes. Even if your spouse is not gainfully employed, if your income qualifies and you file a joint tax return, your spouse may do a Roth IRA.
Download, request online, call 1-800-846-7526 or ask your financial representative for a free prospectus for any Timothy Plan® fund, which contains more complete information about the management company, management fees, charges and expenses. Please read it carefully, before investing, to consider the investment objectives, risks, charges and expenses. The Timothy Plan is distributed by Timothy Partners, Ltd.  Member FINRA.

HEADQUARTERS

The Timothy Plan
1055 Maitland Center Commons
Maitland, Florida 32751
(800) TIM PLAN

SHAREHOLDER SERVICES

The Timothy Plan
c/o Unified Fund Services, Inc.
Post Office Box 6110
Indianapolis, Indiana 46206-6110
(800) 662-0201

Copyright © 2007 Timothy Partners, Ltd. - All rights reserved.
The Timothy Plan name and logo are registered trademarks ® for the Timothy Plan, 1995.


Timothy Plan® family of funds may be offered and sold only to U.S. investors, and the information on this website is intended only for such persons. The information on this website is not an offer to sell or a solicitation of an offer to buy, any security, nor shall any such security be offered or sold to any person in any jurisdiction in which such offer, solicitation, purchase or sale may not lawfully be made. Past performance is no guarantee of future results. Yield, share price and investment return of mutual funds fluctuate such that an investor may receive more or less than original cost upon redemption.  Mutual fund shares are not insured or guaranteed by the U.S. government.

[home]  [our funds]  [retirement plans]  [annuities & more]  [account access]
[news & commentary]  [forms & literature]  [sites & information]