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IRA Account Comparison


TRADITIONAL OR ROTH IRA COMPARISON
Traditional IRA


Roth IRA


Annual contributions allowed: Maximum contribution defined by IRS guidelines. (This is a total contribution for both Traditional and Roth IRAs in any one year.) Maximum contribution defined by IRS guidelines. (This is a total contribution for both Traditional and Roth IRAs in any one year.)
Withdrawal guidelines: Withdrawals made prior to reaching age 59½ may be subject to a 10% IRS penalty; however, withdrawals made prior to 59½ may be made penalty-free to buy a first home or to pay for higher-education. Withdrawals are always penalty-free upon reaching 59½ or when used to buy a first home and if the account has been open for 5 years or more. Withdrawals are IRS penalty-free and tax-free when withdrawn under the same conditions.
Tax Advantages: Contributions by qualified individuals may be deductible, depending on income levels and your participation in an employer-sponsored retirement plan. Distributions are taxed as ordinary income when eventually withdrawn Contributions are not deductible, but qualified distributions are tax-free if the account has been open for 5 years or more.
Open Account: To open an Traditional IRA account, please visit one of our offices or call 800-797-6324. To open an Roth IRA account, please visit one of our offices or call 800-797-6324.