Traditional IRA and Roth IRA Comparison


	Individual Retirement Plans

	Pioneer Roth IRA

		Why Consider Roth?

		Guide to Roth Contributions

		Features

		FAQs

	Roth Conversions

		Making the Decision

		Taking Money Out

	Retirement Planning

		Retirement Savings Opportunities

		Traditional IRA and Roth IRA Comparison

		How Tax Deferral Works

		Taking Your Required Minimum Distribution

	Pioneer Traditional IRA

		Guide to IRA Deductions

		Features

		FAQs

	Coverdell Education Savings Account

	Required Minimum Distributions

	403(b)


Home Retirement Center Individual Retirement Plans Traditional IRA and Roth IRA Comparison

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

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

2012 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:⁵ $125,000 (single tax return) $183,000 (joint tax return)
Maximum Annual Contributions⁶	$5,000 ($6,000 if age 50 or older) or 100% of earned income, whichever is less	$5,000 ($6,000 if age 50 or older) or 100% of earned income, whichever is less
Deductibility of Contributions⁶	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 Withdrawals⁷	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 withdrawals⁸

The $5,000 ($6,000 if age 50 or older) maximum Roth IRA contribution is reduced for those with income between $110,000-$125,000 (single) and $173,000-$183,000 (joint). See our answers to commonly asked questions about the Traditional IRA and the Roth IRA.
Total annual contributions to all IRAs (Traditional and Roth) cannot exceed $5,000 ($6,000 if age 50 or older) per spouse. See Guide to Traditional IRA Deductions for information on IRA deductibility.
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.
Although there are no required minimum distributions during the account owner's lifetime, distribution requirements do apply at death.

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