Our comparison chart can help you choose which IRA can best help you save for retirement.
| Who Can Contribute |
Anyone with earned income, until the year you reach 70 1/2. |
Anyone with earned income and whose Modified Adjusted Gross Income is within IRS limits. |
| Tax advantages |
Contributions may be deductible; earnings aren't taxed until withdrawn |
Qualified withdrawals are tax-free after the account has been open for five tax years and the account owner is age 59 1/2 (or is disabled, dead, or withdrawing up to $10,000 for a first-time home purchase*) |
| Contribution Deductibility |
May be tax-deductible depending on your income and whether you're covered by an employer's retirement plan |
Are not tax-deductible |
| Contribution Maximums |
Under age 50: $5,000
Age 50 or over: $6,000
Limits are for 2008 and 2009; contributions cannot exceed earned income for the year |
Under age 50: $5,000
Age 50 or over: $6,000
Limits are for 2008 and 2009; contributions cannot exceed earned income for the year
|
| Required Distributions |
Must begin at age 70 1/2 |
None |
| Rollovers |
Funds from a qualified retirement plan can be rolled over |
Funds from a qualified retirement plan can be rolled over |