Traditional IRA and Roth IRA Comparison Pioneer Investments: 2013 Traditional IRA and Roth IRA Comparison


Individual Retirement Plans
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Making the Decision
Taking Money Out
Retirement Planning
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Traditional IRA and Roth IRA Comparison
How Tax Deferral Works
Taking Your Required Minimum Distribution
Pioneer Traditional IRA
Guide to IRA Deductions
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Home Retirement Center Individual Retirement Plans Traditional IRA and Roth IRA Comparison Printable Version

2014 Traditional IRA and Roth IRA Comparison

 

Traditional IRA

Roth IRA

Eligibility to Make Contributions

Age limit: 70½
Income limit: none

Age limit: none
Income limit:1
$129,000 (single tax return)
$191,000 (joint tax return)

Maximum Annual Contributions2

$5,500 ($6,500 if age 50 or older) or 100% of earned income, whichever is less

$5,500 ($6,500 if age 50 or older) or 100% of earned income, whichever is less

Deductibility of Contributions2

May be tax-deductible if you do not participate in an employer’s plan or your income is below certain levels

Not tax-deductible

Tax on Withdrawals³

Fully taxable, except any non-deductible contributions, which are returned tax-free

Entirely tax-free if you meet certain conditions. Earnings taxed if you do not meet conditions (but tax-free contributions always come out first)

Age 70½ Withdrawal Requirements

Minimum required withdrawals must begin at age 70½

No age requirements to begin withdrawals4

  1. The $5,500 ($6,500 if age 50 or older) maximum Roth IRA contribution is reduced for those with income between $114,000-$129,000 (single) and $181,000-$191,000 (joint). See our answers to commonly asked questions about the Traditional IRA and the Roth IRA.

  2. Total annual contributions to all IRAs (Traditional and Roth) cannot exceed $5,500 ($6,500 if age 50 or older) per spouse. See Guide to Traditional IRA Deductions for information on IRA deductibility.

  3. The taxable portion of a withdrawal before age 59½ may be subject to an additional 10% penalty tax, unless an exception applies. See our answers to commonly asked questions about the Traditional IRA and the Roth IRA.

  4. Although there are no required minimum distributions during the account owner's lifetime, distribution requirements do apply at death.

2013 Traditional IRA and Roth IRA Comparison

 

Traditional IRA

Roth IRA

Eligibility to Make Contributions

Age limit: 70½
Income limit: none

Age limit: none
Income limit:1
$127,000 (single tax return)
$188,000 (joint tax return)

Maximum Annual Contributions2

$5,500 ($6,500 if age 50 or older) or 100% of earned income, whichever is less

$5,500 ($6,500 if age 50 or older) or 100% of earned income, whichever is less

Deductibility of Contributions2

May be tax-deductible if you do not participate in an employer’s plan or your income is below certain levels

Not tax-deductible

Tax on Withdrawals³

Fully taxable, except any non-deductible contributions, which are returned tax-free

Entirely tax-free if you meet certain conditions. Earnings taxed if you do not meet conditions (but tax-free contributions always come out first)

Age 70½ Withdrawal Requirements

Minimum required withdrawals must begin at age 70½

No age requirements to begin withdrawals4

  1. The $5,500 ($6,500 if age 50 or older) maximum Roth IRA contribution is reduced for those with income between $112,000-$127,000 (single) and $178,000-$188,000 (joint). See our answers to commonly asked questions about the Traditional IRA and the Roth IRA.

  2. Total annual contributions to all IRAs (Traditional and Roth) cannot exceed $5,500 ($6,500 if age 50 or older) per spouse. See Guide to Traditional IRA Deductions for information on IRA deductibility.

  3. The taxable portion of a withdrawal before age 59½ may be subject to an additional 10% penalty tax, unless an exception applies. See our answers to commonly asked questions about the Traditional IRA and the Roth IRA.

  4. Although there are no required minimum distributions during the account owner's lifetime, distribution requirements do apply at death.
 

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