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FAQ

What is the difference between a Roth IRA and a Traditional IRA?

Traditional IRA Roth IRA
Tax Benefits

Contributions may be tax-deductible

Earnings grow tax-deferred

Withdrawals generally are taxable

Contributions are not tax-deductible

Earnings generally grow tax-free

Withdrawals generally are tax-free

Contributions

Visit www.irs.gov for information about contribution maximum amounts.

Visit www.irs.gov for information about contribution maximum amounts.

Catch-Up

Visit www.irs.gov for information about any catch-up contributions that may be allowed.

Visit www.irs.gov for information about any catch-up contributions that may be allowed.

Eligibility

Any age

Must have taxable compensation

No maximum income limits

Any age

Must have taxable compensation

Visit www.irs.gov for information about the maximum income limits.

Withdrawals

Withdrawals after 59½ without tax penalty

Withdrawals before 59½ generally subject to a 10% tax penalty unless exception1 applies

Mandatory withdrawals starting at 73

Withdrawal of original contributions without tax penalty

Withdrawal of earnings before 59½ may be subject to a 10% tax penalty unless a qualified distribution or an exception1 applies

No mandatory withdrawals

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