Chances are you already participate in at least one tax-advantaged retirement program—a
401(k) plan at work, for example, or perhaps an IRA or annuity.

These various programs may offer some of the following benefits, including the ability to:

• Keep more of what you earn through tax-deferred growth
• Save for retirement with pre-tax dollars
• Withdraw assets tax-free for retirement after age 59½ (Roth 401(k)/ Roth IRA)

Participating in the tax-advantaged accounts for which you are eligible may offer one of the best ways of accumulating assets over the long term. But which of these programs makes the most sense for you, given your unique circumstances and their combination of benefits, requirements and constraints? Your UBS Financial Advisor can help you determine an appropriate mix across the following retirement asset tax baskets:

Here are a few guidelines to consider:

• You should consider participating in an employer plan such as a 401(k) or 403(b), if available. These plans enable you to save for retirement with pre-tax dollars and accumulate assets tax-deferred.
• If you're eligible to contribute to a Roth IRA, consider establishing one and contributing to it annually. You'll not only accumulate assets tax-deferred, but you'll potentially be able to withdraw them tax-free at retirement.
• The $100,000 MAGI limit for converting eligible retirement savings accounts to a Roth IRA is eliminated beginning in 2010. You may want to consult with your financial advisor on whether a Roth IRA conversion is appropriate for your needs and goals.
• If you're not eligible for a Roth IRA, you should consider establishing and contributing to a traditional IRA annually.
• Annuities also offer tax-deferred growth opportunities, with no IRS-imposed contribution limits (although they may be subject to insurance company maximums).
• You should realize that different retirement programs have different, and complex, requirements and constraints concerning eligibility, participation and the circumstances under which money can be withdrawn.

The Value of Tax-Deferral
Contributing to an IRA or other tax-advantaged program makes sense at any age. Here's how much you can accumulate over various periods of time by contributing to an IRA on a regular basis:

¹ This hypothetical example is provided for illustrative purposes only and is not meant to represent the performance of any specific investment product. Data assumes a 50-year-old making annual January 1 contributions of $6,000 for 2009 and each year thereafter until the age of 65. This illustration does not take charges, commissions, fees or expenses into consideration.

² A 50-year-old individual can save an extra $175,946 for retirement in only 15 years. A married couple, both aged 50, can save an extra $351,892 in 15 years ($175,946 x 2).

UBS Financial Services Inc., its employees and agents do not provide tax or legal advice. You must consult your tax and legal advisors regarding your personal circumstances.