|What is it?
||A retirement account that allows you to deduct contributions on your income tax now. The investment grows tax-deferred and is subect to income tax when withdrawals are made. 1
||A retirement account that (if eligibility requirements are met) allows you to make after-tax contributions, so the money withdrawn after retirement may be free from federal taxes. 1
||May contribute up to age 70 1/2 as long as you have earned income.
||May contribute at any age as long as you have earned income and meet income requirements.
||10% IRS early withdrawal penalty if withdrawn before age 59 1/2. Possible exemptions apply.
10% IRS early withdrawal penalty if withdrawn before age 59 1/2. Possible exemptions apply. Contributions are not subject to withdrawal penalties.
|Mandatory Withdrawal Age
||Distribution must begin at age 70 1/2.