COLLEGE

1. College Savings Bank Traditional IRA

Significant tax benefits are accorded investors who use IRAs to pay a child's qualified higher education expenses such as tuition, fees, room and board at undergraduate and/or graduate school. A College Savings Bank Traditional IRA is appropriate for those investors seeking:

• Tax-deferred accumulation of interest;
• Waiver of the 10% IRA early withdrawal penalty;
• Shelter from financial aid considerations (under current law);
  and
• Asset control (if your child decides not to attend college, simply rededicate the funds back to your own retirement.)

If you already have an IRA at another institution, you can transfer some or all of the proceeds to a College Savings Bank Traditional IRA. You'll receive maximum tax-deferred CollegeSure CD growth plus the guarantee to meet future college costs no matter how high they rise.

If you do not have an IRA, you may want to start contributing up to $2,000 per year ($4,000 joint) to a College Savings Bank Traditional IRA. In fact, you may enjoy full or partial tax deductibility of your contributions if your income falls below $42,000 single or $62,000 joint in 2000.

If joint income is below $150,000, non-working spouses may deduct full $2,000 contribution to the IRA, even if the working spouse is covered by an employer-sponsored retirement plan.

2. College Savings Bank Roth IRA

The College Savings Bank Roth IRA allows you to make after-tax, non-deductible contributions of up to $2,000 per year ($4,000 joint) if your annual income is under $95,000 single or $150,000 joint. This IRA is appropriate for investors seeking:

• 100% tax-free distributions if you hold the IRA for five years and are at least age 59 1/2;
• 100% penalty-free withdrawals for college;
• 100% tax-free principal withdrawals for college;
  and
• Tax-deferred interest accumulation for college.

Convert your Traditional IRA from another institution to a College Savings Bank Roth IRA. If rolled over in 1998, the taxable portion of your old IRA will be spread out over four years. If you roll over after 1998, it will be fully taxable for the year it is rolled over.

Roth transfers from other institutions also make sense for those investors saving for college who want their money to grow tax-advantaged at a rate equal to college cost inflation.

3. College Savings Bank Education IRA

Important: Unlike the other types of IRAs, you have only until December 31, 1999 to fund your Education IRA for the 1999 tax year.

The College Savings Bank Education IRA allows you and your family (joint incomes under $150,000, single incomes under $95,000) to contribute up to $500 annually toward a child's college education until the child reaches age 18. Non-deductible contributions grow tax-free and distributions are tax-free for college.

Even if you take advantage of the other IRAs, you can open a College Savings Bank Education IRA for your child as beneficiary if your income qualifies and you don't contribute to a state-sponsored tuition plan in the same year.

It makes sense to contribute the maximum! A $500 yearly deposit at a 5.66% annual growth rate will total $15,811 over 18 years. Although this may not cover four years of college, it's a great start. Combined with other College Savings Bank IRAs and Custodial Accounts, you can create a complete tax-advantaged college savings portfolio that meets all your objectives.

511 State Street Baden, PA 15005-1738 Phone: 724 - 869-7526 Fax: 724 - 869-3794 Toll Free: 800 - 727-6332