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Account Comparison

 Which IRA is right for you?

Our comparison chart can help you choose which IRA can best help you save for retirement.

Traditional IRA

Roth IRA

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Contributions may be deductible; earnings aren't taxed until withdrawn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