Is a Traditional or Roth IRA right for you? Compare the differences.
||May allow you to deduct
contributions on your income taxes
now. Investment grows tax-deferred
and then is subject to income tax
when withdrawals are made.
||If you meet eligibility requirements
you can make after-tax
contributions and the money
withdrawn after retirement may
be free from federal taxes.
||You can contribute up to age 70 1/2
as long as you have earned income.
You can contribute at any age as
long as you have earned income and
meet the income requirements.
||No income requirements.
For the 2011 tax year:
- Full contribution if MAGI is less
than $107,000 (single) or
Partial contribution if MAGI is
less than $122,000 (single) or
|Maximum Annual Contribution Per Eligible Individual
||$5,000 ($6,000 age 50 and
older) for the 2011 tax year.
||$5,000 ($6,000 age 50 and older)
for the 2011 tax year
||10% IRS early withdrawal penalty if
withdrawn before age 59 1/2.
Possible exceptions apply.
10% IRS early withdrawal penalty
if earnings are withdrawn before
age 59 1/2. Possible exceptions
Contributions are not subject to
|Mandatory Withdrawal Age
||Distribution must begin at
age 70 1/2.
Contact us for more information.
- Please consult your tax advisor.
- Monthly Adjusted Gross Income