PLAN FOR YOUR FUTURE WITH

PROVIDENCE ASSOCIATION IRA’S AND TAX DEFERRED ANNUITIES – 4.50% CURRENT INTEREST

PLAN FOR COLLEGE TUITION AND RETIREMENT

            An individual Retirement Account (IRA) is one of the best and easiest ways to save for your future. IRA’s have been greatly enhanced by new legislation that brought significant changes to Traditional and Roth IRA’s.

            Depending on the type of IRA you choose, the interest you earn may either be tax-deferred or tax free and the contributions you make may even be tax-deductible. Consult your tax advisor to determine your opportunities. The effective growth rate (up to 7.38%) of a 4.50% tax-deferred or tax-free IRA or annuity, as offered by Providence, is illustrated in the attached charts. Also illustrated are the results of two hypothetical deposit plans.

TRADITIONAL IRA’S

            With a traditional IRA, you may be eligible to deduct all or part of your IRA contribution from your taxable income. You pay no taxes on the interest earned on this IRA until you withdraw the funds. Penalties may be imposed for early withdrawals (before age 59.5); however, tuition costs, long-term disabilities, a first time home purchase, and/or catastrophic medical expenses qualify you for early uses of funds.

            Enhancements made to the Traditional IRA also include increased contribution limits and an increase in the Adjusted Gross Income levels for active participants of employer sponsored retirement plans.

ROTH IRA

            Eligible taxpayers can make nondeductible contributions to a Roth IRA which features tax-free withdrawals. Contribution limits for IRA’s in this tax years are $4,000, or $5,000 for participants age 50 and older. Penalty-free early withdrawals are available for tuition and qualified first-time home purchases.

LEAVING YOUR JOB? PROVIDENCE ARRANGES AND ACCEPTS 401k ROLLOVERS

            If you are leaving or retiring from your job, choosing what to do with your retirement plan payout is critical. Current IRS laws make your choices more complicated and critical: If you are leaving a job with a 401k or similar retirement savings plan, a 20% federal tax withholding requirement (or even a penalty) is levied against any payout not transferred into an IRA or a new employer’s pension plan. Do not delay. Contact Providence so that it can arrange for a tax and penalty free rollover of your monies.

ANNUITIES OFFER SUPPLEMENTAL TAX-DEFERRED SAVINGS

            If you do not qualify for an IRA, or wish to enhance your retirement savings with additional monies, open a Providence Annuity. You will save on taxes and still earn our high current yield of 4.50%. This plan supplements your IRA and pension savings. It is also a major investment advantage for the young and for retired pensioners.

TRUST IN PROVIDENCE

CALL Toll Free: 877.857.2284 or email: info@provassn.com

(SEE REVERSE SIDE FOR GROWTH ILLUSTRATIONS AND RATES)

CHART ILLUSTRATING GROWTH AT VARIOUS INTEREST RATES AND DEPOSIT SCHEDULES

EFFECTIVE GROWTH RATES OF PROVIDENCE ANNUITIES (4.50%)

The tax-deferred or tax-free features of a Providence IRA or Annuity generate a higher effective growth rate than 4.50%, since the growth is not diminished by tax payments)

Federal Tax Bracket             Providence Rate           Effective Growth Rate

            35%                                        4.50%                           7.38%

            33%                                        4.50%                           7.14%

            28%                                         4.50%                          6.62%

            25%                                        4.50%                           6.34%

            15%                                        4.50%                           5.56%

            10%                                        4.50%                           5.23%