|Roth IRA||Traditional IRA|
|Contributions are not tax-deductible.||Contributions are tax-deductible (depending on income level).|
|There is no mandatory distribution age.||You can begin withdrawing, penalty free, at age 59½.
Withdrawals are mandatory after you reach age 70½.
|All withdrawals of earnings and principal are tax-free (subject to certain limitations).||Withdrawals are taxed at ordinary income rates.|
|Contributions can be withdrawn at any time without taxes or penalties. Earnings can be withdrawn without penalty if you are 59½ and your account has been open five years or more.||All funds withdrawn, including principal contributions before 59½, are subject to a 10% penalty (subject to certain exceptions).|
|Available to single filers and those married and filing jointly who make less than the modified adjusted gross income thresholds for that year.||Anyone with earned income can open one. There are no maximum income restrictions.|
This chart is for illustrative purposes only. Please consider your individual circumstances to determine which type of retirement account is appropriate for you.Close