Traditional vs Roth Comparison

	Traditional IRA	Roth IRA
Tax Benefits	Tax-deferred growth: all interest earned is tax sheltered until withdrawn. Deductible contributions: you may deduct contributions from your taxable income. How much you may deduct depends on your marital status, wage income and employee pension status.	Tax-free growth: keep your Roth IRA for at least five years, withdraw funds for the approved reasons (see below) and you will never have to pay tax on the interest you earn. Not tax deductible: you may not deduct Roth contributions from your taxable income.
Eligibility	Any wage-earner or non-working spouse may contribute. Contributions have no age requirement .	Any wage-earner or non-working spouse may contribute. Contributions have no age requirement .
Contribution	The contribution limit is $7,500 per person. Catch-up contributions (Age 50 and above) is an additional $1,100 per person.	The contribution limit is $7,500 per person. Catch-up contributions (Age 50 and above) is an additional $1,100 per person.
Income Limitations	None	Singles – your Modified Adjusted Gross Income (MAGI) must be under $168,000. Married and file jointly – your MAGI must be under $252,000.
Withdrawal	At age 59 ½ you may withdraw funds without penalty. Exceptions: you may withdraw prior to 59 ½ without penalty in the case of death, disability, specific qualified medical expenses or for a child’s college education. Required minimum distributions must begin at age 73.	Withdrawals are generally tax-free and penalty-free if you are 59 ½ or over and have held the account for at least five years, if you are making a first home purchase, or in the case of death or disability. There are no required minimum distributions.
Conversion	You may convert funds from your regular IRA to a Roth IRA.

Please remember to consult a financial or tax professional about saving for your retirement before you make your investment.