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Traditional IRA |
Roth IRA |
| Who is Eligible |
Individuals under age 70½ who have earned income. Deductibility of contributions depends on income. |
Individuals of any age with Modified Adjusted Gross Income under a certain level. more >> |
| Tax Status of Earnings |
Earnings are taxed as regular income according to your income tax bracket at time of withdrawal. |
No taxes paid on earnings provided account has been established for at least five years and at least one of the following applies to the withdrawal:
- First home purchases ($10,000 lifetime limit)
- Death/disability
- Age 591/2 or older
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Yearly Maximum
Allowable Contributions |
Refer to "Contribution Limits". more >> |
Refer to "Contribution Limits". more >> |
Tax Deductibility
of Contributions |
If not covered by an employer-sponsored plan, fully deductible if you are under age 70½.
If covered by an employer-sponsored plan, fully deductible if certain income criteria are met. more >>
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Contributions are not tax deductible. |
Mandatory
Distribution Status |
If covered by an employer-sponsored plan, partially deductible if certain income criteria are met. more >> |
No mandatory distribution requirement. |
Modified Adjusted
Gross Income Limits |
Must begin withdrawals by April 1 following the year in which you reach age 70½.
To fully deduct the maximum contribution:
- Not covered by an employer plan and are under age 70½
- If covered by an employer plan, less than a certain amount of Modified Adjusted Gross Income. more >>
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To be eligible to contribute the maximum amount:
- Meet Modified Adjusted Gross Income requirement. more >>
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Early Withdrawal
of Earnings
(before age 59½) |
To partially deduct:
- Covered by an employer plan but meet Modified Adjusted Gross Income criteria. more >>
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10% early withdrawal penalty waived for:
- Post-secondary education expenses
- First home purchases ($10,000 limit)
- Death/disability
- Certain medical expenses/health insurance premiums during unemployment
- Certain substantially equal annual periodic payments
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