IRA Comparison – Roth IRA vs. Traditional IRA

There are two main types of IRAs to help you save for retirement–Traditional and Roth. Use this IRA comparison chart to help you determine which one may be right for you.

Note: If you would like to compare features of a Rollover IRA, look at the Traditional IRA because a Rollover IRA is a type of Traditional IRA.

	Roth IRA	Traditional IRA
Tax benefits	Tax-free growth Tax-free qualified1withdrawals	Tax-deferred growth Contributions may be tax-deductible
Eligibility — Age	Any age with employment compensation	Under age 70½ with employment compensation
Eligibility — Income	2011 Single filers full contribution: up to $107,000 Partial contribution: $107,000-$122,0002012 Single filers full contribution: up to $110,000 Partial contribution: $110,000-$125,000 2011 Joint filers full contribution: up to $169,000 Partial contribution: $169,000-$179,000 2012 Joint filers full contribution: up to $173,000 Partial contribution: $173,000-$183,000	No income limits5
Maximum contribution	2011 & 2012: $5,000 ($6,000 if you are 50 or older) or 100% of employment compensation, whichever is less
Catch-up contribution	Individuals age 50 or older (in the calendar year of their contribution) can contribute an additional $1,000 each year
Contribution deadline	April 17, 2012
Taxation at withdrawal	Contributions are always withdrawn tax-free Earnings are federally tax-free after the five-year aging requirement has been satisfied and one of the following conditions is met: age 59½, death, disability, qualified first-time home purchase	Withdrawals of pre-tax contributions and any earnings are taxable when distributed
Penalties at withdrawal	A non-qualified distribution is subject to taxation of earnings and a 10% additional tax unless an exception applies	Withdrawals before 59½ may be subject to a 10% early withdrawal penalty unless an exception applies2
Minimum required distributions (MRDs)	Not subject to minimum required distributions during the lifetime of the original owner