Traditional IRA vs. Roth IRA

If you can’t decide which type of IRA is right for you, we're here to help. Compare the benefits of a traditional IRA with a Roth IRA to determine which one is right for you to invest in for your retirement.

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	Traditional IRA	Roth IRA
	Overview
Overview	Contributions are pre-tax dollars (tax-deductible), but latter withdrawals for retirement are to be taxed. This is an excellent way to increase your tax-deferred savings.	If you expect to be in a higher tax-bracket later in life, a Roth IRA account might be more suitable. Roth IRA contributions are already taxed (not-tax-deductible), but earnings and qualified withdrawals are tax-free.
	Tax Advantages
Tax Advantages	Tax-deductible* contributions Tax-deferred until you begin withdrawing funds Taxable withdrawals	Not tax-deductible contributions Tax-free* earnings Qualified withdrawals are tax-free
	Eligibility Requirements
Eligibility Requirements	To make a full contribution, you must have a Modified Adjusted Gross Income of: For tax year 2023 Less than $116,000 if single ($218,000 if married filing jointly) For tax year 2024 Less than $123,000 if single ($230,000 if married filing jointly)	To make a full contribution, you must have a Modified Adjusted Gross Income of: For tax year 2023 Less than $153,000 if single ($228,000 if married filing jointly) For tax year 2024 Less than $161,000 if single ($240,000 if married filing jointly)
	Contribution Limits Per Year
Contribution Limits Per Year	For tax year 2024 $7,000; $8,000 if age 50 or older For tax year 2025 $7,000; $8,000 if age 50 or older	For tax year 2024 $7,000; $8,000 if age 50 or older For tax year 2025 $7,000; $8,000 if age 50 or older Roth Conversion (converting a Traditional IRA to a Roth IRA) is available. *
	Withdrawals
Withdrawals	All earnings and deductible contributions are taxable upon withdrawal Penalties will be incurred if withdrawals are taken before age 59½ yrs., or if minimum withdrawals are not taken by April 1st of the year following the year age 72 yrs. is reached Minimum distributions must begin at age 72 yrs.	Contributions can be withdrawn at any time without taxes or penalties Earnings can be withdrawn with no taxes or penalties as long as you are at least 59½ yrs. of age and the account had been open for at least 5 years No distribution requirements

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* Subject to certain restrictions. Please consult with your tax advisor.

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Making contributions to your IRA

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