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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Open an IRATraditional IRA | Roth IRA | |
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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 |
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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 2023 $6,500; $7,500 if age 50 or older For tax year 2024 $7,000; $8,000 if age 50 or older | For tax year 2023 $6,500; $7,500 if age 50 or older For tax year 2024 $7,000; $8,000 if age 50 or older Roth Conversion (converting a Traditional IRA to a Roth IRA) is available. * |
Withdrawals | ||
Withdrawals |
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* Subject to certain restrictions. Please consult with your tax advisor.
More Information
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