Compare Roth IRA and Traditional IRA

• Yes, up to $6,000 per person to all IRAs combined per year¹
•  Additional $1,000 for individuals who attain age 50 before the end of the tax year

• Yes, up to $6,000 per person to all IRAs combined per year¹
• Additional $1,000 for individuals who attain 50 years of age before the end of the tax year

• No

• No. But prior to January 1, 2020, you were unable to contribute if you were age 70½ or older.

• Yes. In 2021 – the ability to contribute phases out between $125,000 and $140,000 Modified Adjusted Gross Income (MAGI) for single filers and between $198,000 and $208,000 MAGI for joint filers

• No

• No, all contributions are nondeductible, after-tax contributions

• Your deduction is allowed in full if you (and your spouse, if you are married) are not covered by a retirement plan at work.
• Your deduction may be limited if you (or your spouse, if you are married) are covered by a retirement plan at work and your income exceeds certain levels.

• Not if you are the original owner

• Distribution must begin by April 1 following the year in which you attain 72 years of age and by December 31 of later years

• Withdrawals are tax free if account is held for 5 years
• Contributions are withdrawn tax free at any time

• Withdrawals are subject to tax except for pro-rata share of nondeductible contributions

Contributions are withdrawn tax free

• Withdrawals may be subject to an additional 10% tax unless you qualify for an exception

• Withdrawals are subject to an a 10% penalty unless you qualify for an exception

• An account set up as a Roth IRA cannot be converted to a traditional IRA

• A conversion to a Roth IRA results in taxation of any untaxed amounts in the traditional IRA