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Compare Your Options
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Traditional
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Roth
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Rollover
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Spousal
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Contribution Limits
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| $5,000, or 100%
of earned income, whichever is less. |
$5,000, or 100%
of earned income, whichever is less. |
No limit. |
$5,000 to a
traditional or Roth IRA (or 100% of earned income, whichever is less). |
Eligibility |
| Individuals under age 70½ who have earned income. |
Individuals of any age with earned income, whose adjusted gross income is below $120,000 (single) or $177,000 (joint). |
Individuals who are changing jobs or retiring and need to transfer funds from a retirement plan with their former employer. |
Individuals with a spouse who has earned income. See traditional or Roth IRA definitions. |
Taxes |
| Tax-deferred investment growth and possible tax deduction of contributions. |
Tax free investment growth and tax-free distributions if qualified. |
Rollover assets can be invested in either a traditional or Roth IRA, so you can choose between tax-deferred and tax-free growth potential. |
See traditional or Roth IRA definitions. |
Early Withdrawals |
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You can make an early withdrawal (before age 59½) if you use the money for the purchase of a first home or to cover college costs. |
You can withdraw your contributions at any time for any reason. Withdrawal of earnings is also allowed under certain circumstances. |
You can make an early withdrawal (before age 59½) if you use the money for the purchase of a first home or to cover college costs. |
See traditional or Roth IRA definitions. |
Mandatory Distributions |
| Distributions must start by age 70½. |
No. |
Distributions must start by age 70½. |
See traditional or Roth IRA definitions. |
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Next Steps
Choosing between a traditional or Roth IRA?
Questions? Specialists are available 24 hours a day at 1-800-359-3379.
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