TRADITIONAL IRA AND ROTH IRA COMPARISION
Traditional IRA |
Roth IRA |
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QUALIFICATIONS You must be younger than 701/2 at the end of the year, and you must have earned income. |
QUALIFICATIONS You may not earn over these amounts:
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MAXIMUM CONTRIBUTION
Important note for those holding both Traditional and Roth IRAs: |
MAXIMUM CONTRIBUTION
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TAX DEDUCTION RESTRICTIONS Contributions to a Traditional IRA are tax deductible. However, if you are an active participant in an employer retirement plan, then you are subject to deduction phaseouts
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TAX DEDUCTION RESTRICTIONS Roth IRA contributions are NOT tax deductible, but withdrawals and earnings are tax free. |
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WITHDRAWALS Funds can be withdrawn after participant is over age 591/2. Tax will be paid on these withdrawals. Funds may also be withdrawn in certain instances: death or disability, for certain medical expenses, qualified college expenses, 1st time home purchase and IRS levy. |
WITHDRAWALS Tax free withdrawals can be made after participant is over age 591/2. Funds may also be withdrawn in certain instances: death or disability, for certain medical expenses, qualified college expenses, |
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REQUIRED WITHDRAWALS Required withdrawals must begin by April 1st the following year that the participant turns age 701/2. |
REQUIRED WITHDRAWALS Withdrawals are required only after the death of the participant. |
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