Stockholder Services (continued)

Roth IRA. You (and a working or non-working spouse) may each make an after-tax contribution of up to $4,000 per year ($5,000 in 2008) to a Roth IRA provided you have earned income and meet the eligibility requirements. Your MAGI must be less than $95,000 for individuals ($101,000 in 2008) or $150,000 for married couples ($159,000 in 2008) to be eligible to make a full contribution to a Roth IRA. You are eligible to make a partial Roth IRA contribution if your MAGI is below $110,000 for individuals ($116,000 in 2008) or $160,000 for married couples ($169,000 in 2008). Total combined contributions to a Roth IRA and a Traditional IRA cannot exceed $4,000 in any year. Additionally, individuals who reach age 50 prior to the end of a taxable year may make “catch-up contributions” to either a Roth IRA or Traditional IRA of up to $1,000. Earnings grow tax-free and will be distributed to you tax-free and penalty-free provided that you hold your account for at least five years and you take the distribution either after age 59½, for disability, upon death, or to make a first-time home purchase (up to $10,000). Unlike a Traditional IRA, you may contribute to a Roth IRA even if you are over age 70½ (if you have earned income), and you are not required to take minimum distributions at age 70½. You may convert an existing Traditional IRA to a Roth IRA to take advantage of tax-free distributions. You must pay taxes on any earnings and deductible contributions in your Traditional IRA when converting it to a Roth IRA. Talk to your financial advisor for more details on converting your Traditional IRA.

Retirement Planning — Qualified Plans. Unincorporated businesses and the self-employed may take advantage of the same benefits in their retirement plans that are available to corporations. Contribution levels can go as high as 100% of earned income (reduced by plan contributions), to a maximum of $45,000 per participant ($46,000 in 2008). For retirement plan purposes, no more than $225,000 may be taken into account as earned income under the plan in 2007 ($230,000 in 2008). Social Security integration and employee vesting schedules are also available as options in the Tri-Continental prototype retirement plans. Although you already may be participating in an employer’s retirement plan, you may be eligible to establish another plan based upon income from other sources, such as director’s fees.

Retirement Plan Services provides information about our prototype retirement plans. The toll-free telephone number is (800) 445-1777 in the US and (212) 682-7600 outside the US.

Stock Repurchase Program. On March 20, 2007, Tri-Continental suspended the open-market purchases portion of its stock repurchase program pending the outcome of the vote of Stockholders of the Corporation on a proposal to implement a Distribution Policy. The Distribution Policy was approved by Stockholders on May 30, 2007, and the Board of Directors authorized the repurchase of common stock in the open market if the discount to net asset value is greater than 5%. The Board intends such repurchases to moderate the growth in the number of outstanding shares resulting from the investment by Stockholders of distributions received under the Distribution Policy. The Corporation recommenced its open market purchases in August 2007 following the first distribution paid under the Distribution Policy.

On November 15, 2007, the Board of Directors voted to renew Tri-Continental’s stock repurchase program. The program allows the Corporation to repurchase up to 5% of its common stock in the open market from January 1, 2008 through December 31, 2008, as long as its discount to NAV exceeds 5%.

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Board of Directors

 

Maureen Fonseca (3)		William C. Morris
Head of School, The Masters School		Chairman and Director, J. & W. Seligman & Co.
Trustee, Newark Academy, New York State		Incorporated, Carbo Ceramics Inc., Seligman
Association of Independent Schools,		Advisors, Inc., and Seligman Services, Inc.
and Greens Farms Academy		Director, Seligman Data Corp.
Commissioner, Middle States Association		President and Chief Executive Officer,
		The Metropolitan Opera Association
John R. Galvin (1,3)
Dean Emeritus, Fletcher School of Law		Leroy C. Richie (1,3)
and Diplomacy at Tufts University		Counsel, Lewis & Munday, P.C.
Chairman Emeritus, American Council		Director, Vibration Control Technologies, LLC
on Germany		Lead Outside Director, Digital Ally Inc. and
		Infinity, Inc.
John F. Maher (1,3)		Director and Chairman, Highland Park Michigan
Retired President and Chief Executive Officer,		Economic Development Corp.
Great Western Financial Corporation and its		Chairman, Detroit Public Schools Foundation
principal subsidiary, Great Western Bank
		Robert L. Shafer (2,3)
Frank A. McPherson (2,3)		Ambassador and Permanent Observer of the Sovereign
Retired Chairman of the Board and Chief Executive		Military Order of Malta to the United Nations
Officer, Kerr-McGee Corporation
Director, DCP Midstream GP, LLP, Integris		James N. Whitson (1,3)
Health, Oklahoma Medical Research Foundation,		Retired Executive Vice President and Chief Operating
Oklahoma Foundation for Excellence in Education,		Officer, Sammons Enterprises, Inc.
National Cowboy and Western Heritage Museum, and		Director, CommScope, Inc.
Oklahoma City Museum of Art
		Brian T. Zino
Betsy S. Michel (2,3)		Director and President,
Attorney		J. & W. Seligman & Co. Incorporated
Trustee, The Geraldine R. Dodge Foundation and		Director, Seligman Advisors, Inc. and
Drew University		Seligman Services, Inc.
		Chairman, Seligman Data Corp.
		Member of the Board of Governors,
		Investment Company Institute
		Member:	(1) Audit Committee
			(2) Director Nominating Committee
			(3) Board Operations Committee

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Executive Officers
William C. Morris		Thomas G. Rose
Chairman		Vice President
Brian T. Zino		Lawrence P. Vogel
President and Chief Executive Officer		Vice President and Treasurer
John B. Cunningham		Frank J. Nasta
Vice President		Secretary
Eleanor T.M. Hoagland		Marco F. Acosta
Vice President and Chief Compliance Officer		Assistant Vice President
Charles W. Kadlec
Vice President

Additional Fund Information
Manager		Important Telephone Numbers
J. & W. Seligman & Co. Incorporated		(800) TRI-1092			Stockholder Services
100 Park Avenue		(800) 445-1777			Retirement Plan Services
New York, NY 10017		(212) 682-7600			Outside the United States
Stockholder Service Agent		(800) 622-4597			24-Hour Automated
Seligman Data Corp.					Telephone Access Service
100 Park Avenue
New York, NY 10017
Mail Inquiries To:
P.O. Box 9759
Providence, RI 02940-9759

This report is intended only for the information of Stockholders who have received the current prospectus covering shares of Common Stock of Tri-Continental Corporation, which contains information about investment objectives, risks, management fees and other costs. The prospectus should be read carefully before investing and may be obtained by calling Stockholder Services at 800-TRI-1092.

 

END OF THIRD QUARTER REPORT

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