Enlarge this Chart

This webpage is intended to provide general information about IRAs. It is not intended to be legal advice, or to be a detailed explanation of IRA account rules and how they may apply to your individual situation. For specific information, you are encouraged to consult your tax or legal professional.

TRADITIONAL IRA AND ROTH IRA COMPARISION

Traditional IRA

Roth IRA

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:

 

TAX
YEAR 2008

TAX
YEAR 2009
Singles $116,000 $120,000
Married Filing Jointly $169,000 $176,000
Married Filing Separately $10,000 $10,000

MAXIMUM CONTRIBUTION

 

TAX YEAR 2008

TAX YEAR 2009
Up to
age 49 		$5000 $5000
Age 50
and over 		$6000 $6000

 

 

Important note for those holding both Traditional and Roth IRAs:
The total contribution to both accounts combined cannot exceed $4,000 for those age 49 and under, or $5,000 for those age 50 and over, in both tax year 2008, and tax year 2009.

MAXIMUM CONTRIBUTION

 

TAX YEAR 20087

TAX YEAR 2009
Up to
age 49 		$5000 $5000
Age 50
and over 		$6000 $6000

SINGLE FILERS

Contri-
bution

TAX
YEAR
2008

TAX
YEAR
2009
FULL
up to $101K
up to $105K
Partial
$101-116K
$105-120K
None
over $116K
over $120K

MARRIED FILING JOINTLY

Contri-
bution

TAX
YEAR
2008

TAX
YEAR
2009
FULL
up to $159K
up to $166K
Partial
$159-169K
$166-176K
None
over $169K
over $176K

 

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

SINGLE FILERS

Contri-
bution

TAX
YEAR
2008

TAX
YEAR
2009
FULL
up to $53K
up to $55K
Partial
$53-63K
$55-65K
None
over $63K
over $65K

MARRIED FILING JOINTLY

Contr-
ibution

TAX
YEAR
2008

TAX
YEAR
2009
FULL
up to $85K
up to $89K
Partial
$85-105K
$89-109K
None
over $105K
over $109K

TAX DEDUCTION RESTRICTIONS

Roth IRA contributions are NOT tax deductible, but withdrawals and earnings are tax free.

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Funds can be withdrawn after participant is over age 591/2.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 Funds may also be withdrawn in certain instances: death or disability, for certain medical expenses, qualified college expenses, 1st time home purchase and IRS levy.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 Funds may also be withdrawn in certain instances: death or disability, for certain medical expenses, qualified college expenses,
1st time home purchase and IRS levy.

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.