|Roth IRA||Traditional IRA|
|Taxes||Contributions made are not deductible.||Contributions made can be tax-deductible or non-deductible. Deductibility of contributions depends on active participation in a retirement plan and your modified adjusted gross income (MAGI) not exceeding certain amounts.|
|Withdrawal of contributions
||Withdraw anytime without taxes or penalties.||Withdraw anytime but deductible contributions are taxable and generally subject to penalties if withdrawn before age 59½.
|Withdrawal of Earnings||Tax- and penalty-free when withdrawn at age 59½ if account has been active for at least five years.
||Taxable when withdrawn and generally subject to penalties if withdrawn before age 59½.
|Age restrictions||None.||Must be under age 70½ during the tax year of the contribution.
|Eligibility||May contribute only if, depending on filing status, MAGI does not exceed certain amounts. You must have US earned income.
||No restrictions on contributions. You must have US earned income.|
|Required minimum distributions (RMDs)||None during your lifetime.||Must begin taking for the year in which you reach age 70½.|
|What are the contribution limits?||
For the 2019 tax year:
Depending on your income, contribution limits may be lower. See below for detailed income limits for Roth IRA Contribution Eligibility.
For the 2019 tax year:
Depending on your income, contribution limits may be lower. See below for detailed income limits for Traditional IRA Contribution Eligibility.
|Will my contributions be deductible when I file my taxes?||Roth contributions are non-deductible.||
You may be eligible to deduct all or a portion of your Traditional IRA contributions depending on you and/or your spouse's retirement plan eligibilty and adjusted gross income.
See below for income limits for Traditional IRA deductibility.
|What are the contribution deadlines in a given year?||Your tax return filing deadline (not including extensions).||Your tax return filing deadline (not including extensions).|
Income Limits for Roth IRA Contributions1
|Single or Head of Household||Phased out: $122,000-$137,0003 for 2019 ($120,000-$135,000 for 2018)|
|Married Filing Jointly or Qualifying Widow(er)2||Phased out: $193,000-$203,0003 for 2019 ($189,000-$199,000 for 2018)
1There are no income limits for converting Traditional IRA assets to a Roth IRA.
2For married taxpayers filing separately: If you did not live with your spouse at any time during the tax year, see the “single” filing status. Otherwise, your eligibility is phased out between modified adjusted gross income (MAGI) of $0 and $10,000.
3This amount refers to the taxpayer’s MAGI, which does not include amounts that were converted.
Income Limits (MAGI) for Traditional IRA Deductibility4
|Single or Head of Household||Not eligible to participate in an employer retirement plan||Full|
|Eligible to participate in an employer retirement plan||Phased out: $64,000–$74,000 for 2019 ($63,000–$73,000 for 2018)|
|Married Filing Jointly5||Neither you nor your spouse is eligible to participate in an employer retirement plan||Full|
|You are not eligible to participate in an employer retirement plan, but your spouse is eligible||Phased out: $193,000–$203,000 for 2019 ($189,000–$199,000 for 2018)|
|You are eligible to participate in an employer retirement plan||Phased out: $103,000–$123,000 for 2019 ($101,000–$121,000 for 2018)|
4There are no income limits for contributing to a Traditional IRA—the limits only apply to determining whether that contribution is deductible.
5Consult IRS rules or a tax professional if your status is married filing separately or qualifying widow(er).
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You need to maximize your return potential, so we work to keep our fees competitive. That's why our solutions include no-load mutual funds with low expense ratios. Keep in mind that a Traditional IRA/Roth IRA may be subject to an annual fee, and a fee may be assessed when a Traditional IRA/Roth IRA is closed. Here's more information on fees.
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