IRA Comparisons

Comparison	Traditional IRA	Roth IRA
Description	A traditional IRA offers the potential for tax deductions and the tax-deferred compounding of investment returns.	The Roth IRA is a type of non-deductible IRA that can provide tax-free growth.
Who can contribute?	Anyone under age 70 ½ with earned income, regardless of income level. A working spouse with earned income can also contribute to a spousal IRA for a nonworking spouse below the age of 70 ½ if they file a joint tax return.	Anyone with earned income (no age restriction) whose adjusted gross income is below $117,000 (single tax returns) or $184,000 (joint tax returns) may make a full contribution. No contribution may be made for adjusted gross income above $132,000 (single tax returns) or $194,000 (joint tax returns).
What is the deadline?	The account must be established and the contribution made by the tax filing date for the year. without extensions.	The account must be established and the contribution made by the tax filing date for the year. without extensions.
Total Contributions	Year: Amount: 2017 ..................... ..$5,500 +$1,000 age 50+ catch-up	Year: Amount: 2017 ..................... ..$5,500 +$1,000 age 50+ catch-up
What are the Tax Advantages?	Tax-deferred investment growth for accounts and possible tax deduction for contributions. Taxes are generally not paid on deductible contributions and earnings until money is withdrawn. Distributions are allowed after age 59 1/2, death, disability. certain medical expenses, medical insurance during long-term unemployment, first-time home purchases and higher education expenses. If you are in a lower tax bracket during retirement than when the contribution is made. a tax-deductible traditional IRA may be more beneficial than a Roth IRA.	Tax-free investment growth for accounts that have been opened for at least five years. beginning with the first taxable year a contribution was made. and if made after age 59 1/2, death. disability, certain medical expenses, medical insurance during long-term unemployment, first-time home purchases and higher education expenses. Distributions of contributions are tax-free and penalty-free at any time. If you are in a higher tax bracket during retirement than when the contribution is made. a Roth IRA may be more beneficial than a tax-deductible traditional IRA.

The information provided is general in nature and subject to changes by the Internal Revenue Service.