Comparison of Retirement Savings Options

	Eligibility	2007/2008 Contribution Limits	2007/2008 Catch-Up Provisions (age 50+)	Withdrawal Restrictions	Investment Flexibility	Fees and Expenses	Taxation at Withdrawal
401(k)	Must work for an employer sponsoring a plan	$15,500 for 2007 and 2008	$5,000¹ for 2007 and 2008	After age 59½ or 10% penalty	Limited to employer's offering	Fund fees	Pre-tax contributions and gains are taxed as ordinary income
Traditional IRA	Earned income must be equal or greater than contribution²	$4,000/$5,000 or 100% of compensation³	$1,000/$1,000	After age 59½ or 10% penalty; must begin withdrawing by age 70½⁴	Any stocks or mutual funds	Fund fees and account fees⁵	Pre-tax contributions and gains are taxed as ordinary income
Roth IRA	Earned income must be equal or greater than contribution and less than $95,000 for single filers/$150,000 for joint filers²	$4,000/$5,000 or 100% of compensation³	$1,000/$1,000	Can withdraw contributions anytime without penalty or tax⁶	Any stocks or mutual funds	Fund fees and account fees⁵	Tax-free after age 59½ and 5-year aging period
Tax-Deferred Variable Annuity	Generally under age 80 (age 85 if funding by 1035 exchange)	Can be unlimited	No provisions	After age 59½ or 10% penalty; generally must begin withdrawing by age 90	Limited to available funds within annuity	Annuity charges plus underlying fund fees and surrender fee	Gains and dividends are taxed as ordinary income
Tax-Deferred Fixed Annuity	Generally under age 95	Can be unlimited	No provisions	After age 59½ or 10% penalty; generally must begin withdrawing by age 85	Choice of guarantee periods and rates⁷	Annuity charge and surrender fee	Gains and dividends are taxed as ordinary income

401(k) and 403(b) catch up provisions are dependent on provisions set by the employer sponsored plan.
For Traditional IRAs, if you are eligible to participate in an employer-sponsored plan, then the deductible contribution limit may be limited by your income.

For single filers, a full deduction is permitted up to $52,000 and partial deductibility is permitted up to $62,000 for 2007 ($53,000-63,000 for 2008).
For 2007 contributions for married filing joint, full deductibility is permitted up to $83,000 and partial deductibility is permitted up to $103,000. For 2008, full deductibility is permitted up to $85,000, and partial deductibility is permitted up to $105,000.
For Roth IRAs, partial contributions may be made up to $114,000 for single filers and $166,000 for married filing joint. For 2008 partial contributions up to $116,000 for single filers and $169,000 for married filing joint. A non-working spouse may make additional contributions to a Traditional or Roth IRA, though combined contributions may not exceed combined compensation.

Whichever is less, per person, per tax year (in total to both a Roth IRA and Traditional IRA).
Minimum required distributions must start by April 1, of the year following the year you turn 70½.
Fidelity's Traditional, Roth, SEP, and Rollover IRAs do not charge any account maintenance fees. Fund expenses and brokerage commissions still apply. Depending on your situation, fees may include low-balance fees, short-term trading fees, and account closing fees.
A distribution from a Roth IRA is tax-fee and penalty-free provided that the five-year aging requirement has been satisfied and one of the following conditions is met: age 59½, death, disability, qualified first time home purchase. Withdrawals before age 59½ may be subject to a 10% penalty on capital gains.
Guarantees are subject to the claims-paying ability of the issuing insurance company.

Generally, each annuity payment consists of a portion that is considered a return of cost and a portion that is considered taxable income. There are different methods to calculate these amounts, and you should consult a tax adviser for your specific situation.

Principal value, income payments, and investment returns of a variable annuity will fluctuate and you may have a gain or loss when money is received or withdrawn.