IRA Types

IRA Types

FeatureTraditional IRARoth IRAEducation IRA
Modified Adjusted Gross Income Eligibility RestrictionsEligibility Restrictions: Anyone under age 70½ with earned income may contribute.Individuals earning $135,000 or less (2018)
$137,000 or less (2019).

Married couples earning $199,000 or less (2018)
$203,000 or less (2019).

Partial contribution limits in effect for income ranges:
$122,000 - $137,000 (single)
$193,000 - $203,000 (married)
Individuals earning $110,000 or less (2018 & 2019).

Married couples earning $220,000 or less (2018 & 2019).

Partial contribution limits in effect for income ranges:
$95,001 -$110,000 (single)
$190,001 -$220,000 (married)
Maximum Annual Contribution
Does not imply that $6,000 can be contributed to both IRA types. A maximum $6,000 can be contributed to one or the other or split between both.
$6,000
Additional $1,000 if you are 50 years of age or older.

May not exceed taxable compensation for the year.
$6,000
Additional $1,000 if you are 50 years of age or older.

May not exceed taxable compensation for the year.
$2,000 per child, under age 18 (combined maximum for all contributors)
Non-wage Earning Spousal Contribution$5,500
Additional $1,000 if 50 or over.
$5,500
Additional $1,000 if 50 or over.
N/A
Tax Deductibility of Contributions1Depends upon adjusted gross income, tax filing status and participation in an employer-sponsored pension plan, such as a 401(k).Contributions are never deductible. Contributions are never deductible.
Tax Treatment of Earnings1Grow tax deferred until withdrawn. Grow tax deferred and potentially tax free.Grow tax deferred and potentially tax free.
Deadline to ContributeTax filing deadline, not including extensions.Tax filing deadline, not including extensions.Tax filing deadline, not including extensions.
Taxes Upon Withdrawal1Withdrawals of deductible contributions and earnings are taxed as ordinary income at the current tax bracket.None.
(For qualified distributions.)
None.
(For qualified distributions.)
Withdrawal Restrictions1 Withdrawals before age 59½ result in IRS penalties. Some exceptions for penalty free withdrawals include: first-time home purchase, college expenses, medical expenses, disability and death.Tax-free after five years participation if distributed after age 59½, after owner's death, while owner is disabled or if used for first-time home purchases.Tax-free if entire distribution is used for qualifying education expenses. (Expenses for elementary, secondary and post-secondary education and computer technology equipment.)

Penalty free withdrawal exceptions:

• Death
• Disability
• Certain scholarship payments
Age at Which Withdrawals Must Begin70½No restrictions.Distribution of remaining funds required at age 30, within 30 days after 30th birthday.

1 Consult a tax professional for tax advice.

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