Commerce Funds

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A Quick Guide to IRAs

Click here to download this Quick Guide in PDF format.

	Deductible Traditional IRA	Roth IRA
Who is Eligible?	Anyone under age 70 ½ with earned income below certain limits or who is not eligible to participate in a qualified retirement plan at work.	Anyone with earned income below certain income limits.
Annual Contribution Limit	$5000	$5000
Deductible Contributions?	Yes, if you do not have an employer-sponsored retirement plan or if you have a plan but your earned income is below certain levels.	No
Earnings Grow Tax-Deferred?	Yes	Yes
Earnings Taxed Upon Withdrawal?	Yes	No
Distributions and Penalties	Distributions are penalty-free after age 59 ½, though tax-deductible contributions and earnings are taxable. Distributions prior to age 59 ½ may incur a 10% penalty unless there is an exception. Individuals, who do not start required minimum distributions by age 70 ½, may also be subject to penalties.	If an account has been established for five years, contributions and their earnings may be distributed tax-free for qualified purposes. Non-qualified distributions may be taxable and may incur a 10% penalty unless there is an exception.
Mandatory Distributions?	Yes, distributions must begin by age 70 ½.	No, you can continue contributions as long as you have earned income and postpone distributions for as long as you like.

IRS Circular 230 disclosure: Commerce Bank does not provide legal, tax or accounting advice. Any statement contained in this communication concerning U.S. tax matters was not intended or written to be used, and cannot be used, for the purpose of avoiding penalties under the Internal Revenue Code, and was written to support the promotion or marketing of the transaction(s) or matter(s) addressed. Clients of Commerce Bank should obtain their own independent tax advice based on their particular circumstances.

A prospectus for the Commerce Funds containing more complete information may be obtained by calling 1-800-995-6365 or bydownloading it from this website. Please consider a Fund's objectives, risks, and charges and expenses, and read the prospectus carefully before investing. The prospectus contains this and other information about the Fund.

The mutual funds referred to in this Web site are offered and sold only to persons residing in the United States and are offered by prospectus only. The prospectus contains more complete information about the funds, including charges and expenses, and should be read carefully before investing.