Roth vs. Traditional IRA

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Contributions can be withdrawn at any time without taxes or penalties. Earnings can be withdrawn without penalty if you are 59½ and your account has been open five years or more. All funds withdrawn, including principal contributions before 59½, are subject to a 10% penalty (subject to certain exceptions).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