Retirement right-arrow Traditional IRA vs. Roth IRA

Traditional IRA vs. Roth IRA

If you can’t decide which type of IRA is right for you, we're here to help. Compare the benefits of a traditional IRA with a Roth IRA to determine which one is right for you to invest in for your retirement.

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Traditional IRA

Roth IRA

Overview Contributions are pre-tax dollars (tax-deductible), but latter withdrawals for retirement are to be taxed. This is an excellent way to increase your tax-deferred savings. If you expect to be in a higher tax-bracket later in life, a Roth IRA account might be more suitable. Roth IRA contributions are already taxed (not-tax-deductible), but earnings and qualified withdrawals are tax-free.
Tax Advantages
  • Tax-deductible* contributions
  • Tax-deferred until you begin withdrawing funds
  • Taxable withdrawals
  • Non tax-deductible contributions
  • Tax-free* earnings
  • Qualified withdrawals are tax-free
Eligibility Requirements Anyone with earned income may contribute up to the age of 72 yrs. Your income impacts how much you can contribute. To make a full contribution, you must have a Modified Adjusted Gross Income:

For tax year 2020:
Single: Less than $124,000
Married filing jointly: Less than $196,000
Contribution Limits Per Year For tax year 2019:
$6,000
$7,000 if age 50 or older

For tax year 2020:
$6,000
$7,000 if age 50 or older
For tax year 2019:
$6,000
$7,000 if age 50 or older

For tax year 2020:
$6,000
$7,000 if age 50 or older

Roth Conversion (converting a Traditional IRA to a Roth IRA) is available.*
Withdrawals
  • All earnings and deductible contributions are taxable upon withdrawal
  • Penalties will be incurred if withdrawals are taken before age 59½ yrs., or if minimum withdrawals are not taken by April 1st of the year following the year age 72 yrs. is reached
  • Minimum distributions must begin at age 72 yrs.
  • Contributions can be withdrawn at any time without taxes or penalties
  • Earnings can be withdrawn with no taxes or penalties as long as you are at least 59½ yrs. of age and the account had been open for at least 5 years
  • No distribution requirements
OPEN TRADITIONAL IRA Learn more about traditional IRAs > OPEN ROTH IRA Learn more about Roth IRAs >

* Subject to certain restrictions. Please consult with your tax advisor.

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