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Description
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Investing in your future with a secure retirement savings method. Contributions are made on a pre-tax basis, making personal tax planning a bit easier.
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A special retirement account where you pay taxes on money going into your account and then all future withdrawals are tax-free.
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Eligibility Age
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You must be under age 70½ to contribute to a traditional IRA
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You can contribute to a Roth IRA at any age
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Income
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Requires earned income and contributions can be made regardless of your income
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Requires earned income and there can be income restrictions for contributions.*
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Tax Advantages
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Funds may grow tax-deferred
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Funds may grow tax-free
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Contributions
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May be Tax-Deductible*
Maximum Contributions apply, based on IRS annual determination.
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Not Tax-Deductible
Maximum Contributions apply, based on IRS annual determination.
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Distributions
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Distributions are taxed per your income bracket at the time of distribution.
Early withdrawals: Unless an exception applies, withdrawals before age 59 ½ may be subject to a 10% penalty
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Distributions can be tax-free and/or penalty-free if the account has been open for at least five years
Early withdrawals: Unless an exception applies, non-qualified withdrawals may be subject to taxation of earnings and a 10% additional tax
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