Should I convert some of my Traditional IRA assets to a Roth IRA in 2010? RELAXED ELIGIBILITY MAY MEAN NEW OPPORTUNITY ► FOR INVESTMENT PROFESSIONALS Not FDIC Insured  May Lose Value  No Bank Guarantee Vickery Creek Capital Management, LLC

For investment professional use only. Agenda Roth IRA Review What’s New in 2010 Roth Opportunity – 2010 and Beyond Action Steps Vickery Creek & Fidelity Support & Resources

For investment professional use only. Qualified distributions are tax free and must meet the following requirements 5-year aging date has been met And is due to one of the following: Age 59½ or older Death Disability First-time home purchase (up to $10,000 lifetime limit) Roth IRA Review prior to 2010 Generally funded with after-tax or non-deductible contributions Modified Adjusted Gross Income (MAGI) eligibility limits Tax-free growth Can receive rollover assets from some qualified workplace retirement plans

For investment professional use only. Roth IRA conversions– prior to 2010 *Subject to plan rules Retirement assets eligible for conversion Traditional & Rollover IRA SEP IRA SIMPLE IRA 401(k)* 403(b)* 457(b)* Moving tax-deferred retirement assets to a Roth IRA Reported and taxed as a distribution in year converted Modified Adjusted Gross Income of $100,000 or less Not available for a married individual filing separately

For investment professional use only. What’s new in 2010? Effective January 1 $100,000 MAGI conversion eligibility requirement removed Option to spread 2010 income tax on the conversion amount equally over 2011 and 2012 Individuals who are married filing separately are eligible for conversions Note: Conversion amount included in taxable income

For investment professional use only. Potential client benefits Taxes on 2010 conversions due in 2011 ⁃ Can be spread ratably over 2011 and 2012 Roth IRAs do not have Required Minimum Distributions (RMDs) Tax-free growth Qualified distributions are tax and penalty free for clients and their beneficiaries

For investment professional use only. Client considerations Taxation of conversion Pretax and after-tax dollars can be converted Pretax dollars taxed upon conversion Aggregation rules apply Traditional IRARollover IRA Pretax Contributions $70,000$200,000 After-tax Contributions $0$35,000 Earnings $30,000$15,000 Account Value $100,000$250,000 Aggregate account value = $350,000 Cost Basis = $35,000 For illustrative purposes only. Source: SunGard PlanningStation IRA Conversion Calculator Cost Basis

For investment professional use only. Scenario IRA Account Value Taxes Owed Conversion Amount to Roth (taxes taken out) Conversion Amount to Roth (taxes paid from outside assets) 35% Federal Tax Bracket 1.$100,000$35,000$65,000$100,000 2.$50,000$17,500$32,500$50,000 Client considerations Tax Impact Tax-free growth Tax diversification For illustrative purposes only. Source: SunGard PlanningStation IRA Conversion Calculator

For investment professional use only. Client considerations Tax brackets: year of conversion vs. potential bracket in retirement Age of investor No age limit on contributions No Required Minimum Distributions

For investment professional use only. Key dates/reminders JANUARY 1, 2010 – first day eligible clients can convert to Roth IRAs with elimination of AGI limits Note: April 15 th is NOT applicable for Roth conversions December 31, 2010 – last day to convert and take advantage of election to spread tax liability over 2011 & 2012 Today – start Roth conversion dialogue with Jack and Stephanie at Vickery Creek

For investment professional use only. Before investing, consider your investment objectives, risks, charges, and expenses. Contact Vickery Creek Capital Management, LLC for more information at For investment professional use only. The tax and estate planning information contained herein is general in nature, is provided for informational purposes only, and should not be construed as legal or tax advice. Fidelity does not provide legal or tax advice. Fidelity cannot guarantee that such information is accurate, complete, or timely. Laws of a particular state or laws which may be applicable to a particular situation may have an impact on the applicability, accuracy, or completeness of such information. Federal and state laws and regulations are complex and are subject to change. Changes in such laws and regulations may have a material impact on pre- and/or after-tax investment results. Fidelity makes no warranties with regard to such information or results obtained by its use. Fidelity disclaims any liability arising out of your use of, or any tax position taken in reliance on, such information. Always consult an attorney or tax professional regarding your specific legal or tax situation. Not NCUA or NCUSIF insured. May lose value. No credit union guarantee. SunGard is an independent company and is not affiliated with Vickery Creek or Fidelity Investments. Fidelity Investments Institutional Services Company, Inc., 100 Salem Street, Smithfield, RI Vickery Creek and Fidelity Insight Diversification Dedicated Support Important information