|
Traditional
|
Roth
|
Rollover
|
Spousal
|
Contribution Limits
|
| $5,500, or 100%
of earned income, whichever is less. |
$5,500, or 100%
of earned income, whichever is less. |
There is no limit on the amount that you can roll over into an IRA. Further contributions are limited to $5,500, or 100% of earned income, whichever is less. |
$5,500 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 $127,000 (single) or $188,000 (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 |
|
You are able to make early withdrawals for any reason (before age 59½); however, if they are considered “non-qualified” by the IRS, penalties may apply. Examples of “qualified” withdrawals would be the purchase of a first home or higher education expenses. |
You are able to make early withdrawals for any reason (before age 59½); however, if they are considered “non-qualified” by the IRS, penalties may apply. Examples of “qualified” withdrawals would be the purchase of a first home or higher education expenses. |
You are able to make early withdrawals for any reason (before age 59½); however, if they are considered “non-qualified” by the IRS, penalties may apply. Examples of “qualified” withdrawals would be the purchase of a first home or higher education expenses. |
You are able to make early withdrawals for any reason (before age 59½); however, if they are considered “non-qualified” by the IRS, penalties may apply. Examples of “qualified” withdrawals would be the purchase of a first home or higher education expenses. |
Mandatory Distributions |
| Distributions must start by age 70½. |
No. |
Distributions must start by age 70½. |
See traditional or Roth IRA definitions. |
