Compare IRAs
Roth IRA
Traditional IRA
Features & Benefits
  • Contributions (not earnings) can be withdrawn tax free at any time
  • Contributions are not tax-deductible
  • Qualified withdrawals are federally tax-free and may be state tax-free after age 59½ and account has been open five years or more1 
  • No income restrictions required on converting a Traditional IRA to a Roth IRA
  • Contributions and earnings may be withdrawn without a 10% additional tax at or after age 59½
  • Contributions may be tax deductible
  • Withdrawals must be taken the year in which you turn age 70½
Who is eligible?
Any age, as long as your modified adjusted gross income (MAGI) does not equal or exceed:
Single Tax Filers $132,000
Joint Tax Filers $194,000
Keep in mind that your Roth contribution limit phases out if your 2016 earned income is between $117,000 - $132,000 for singles filers and $184,000 - $194,000 for joint filers.
You may convert a traditional IRA to a Roth IRA regardless of your MAGI level. MAGI-based restrictions only apply to how much you can contribute to a Roth IRA.
Anyone under the age of 70½ who has earned income equal to or greater than their IRA contribution amount.
No Required Minimum Distribution (RMD) ever.
Subject to an exception, a Required Minimum Distribution (RMD) must be taken beginning in the year in which you turn age 70½.
1 There is a single, 5-year holding period when determining whether earnings can be withdrawn federal (and, in most cases, state) income tax-free as part of a qualified distribution from a Roth IRA. This period begins January 1 of the year of the first contribution to any Roth IRA account.