IRA COMPARISON CHART

Traditional IRA

Roth IRA

• You must have earned income in the year the contribution is made.
• A non-working spouse is also eligible to contribute up to $7,000 in 2025, or $8,000 if age 50 or above, based on working spouse's income.

• No age limit, you must have a modified adjusted gross income (MAGI) below $150,000 if single or $236,000 if married and filing jointly.
• The maximum contribution limit is phased out for those individuals with AGI between $150,000 and $165,000 (single) and $236,000 and $246,000 (joint).
• A non-working spouse is also eligible to contribute up to $7,000 in 2025, or $8,000 if age 50 or above. The same higher annual maximum contribution limits apply

2025: $7,000 annually

2025: $7,000 annually

If you are age 50 or older in the year of the contribution, eligible IRA holders can make an additional contribution of $1,000.

If you are age 50 or older in the year of the contribution, eligible IRA holders can make an additional contribution of $1,000.

• Investment growth is tax-deferred.
• Contributions are possibly tax deductible.
• Taxes are not paid on deductible contributions and all earnings until money is withdrawn.

Investment growth is tax-deferred and earnings can be withdrawn tax-free if the account has been open for at least five years and if certain requirements are met.

• If neither you nor your spouse is an active participant in an employer-sponsored plan, your entire contribution is tax deductible.
• If you are an active participant in an employer-sponsored plan, and (subject to certain phaseout provisions) your MAGI in 2025 does not exceed $79,000 (single) or $126,000 (joint).

• Contribution is tax deductible

If you were born on or after July 1, 1949 but before January 1, 1951, distributions must begin by April 1 of the calendar year following the year you reach age 72 and continue each year by December 31. If you were born on or after January 1, 1951 distributions must begin by April 1 of the calendar year following the calendar year you reach age 73 and continue each year by December 31.

Taxable amounts withdrawn prior to age 59 ½ may be subject to an additional 10% penalty tax.

• Distributions not required during life of IRA owner (nor during the life of a spouse beneficiary who elects to treat Roth IRA as his/her own).
• Distributions that are not “qualified distributions” are includable in income to the extent attributable to earnings. For individuals under age 59½, a 10% early distribution penalty will typically apply to the taxable portion of the non-qualified distribution unless an exception applies.

Withdrawals can potentially be made penalty-free prior to age 59½ under these circumstances:

• certain unreimbursed medical expenses;
• due to IRS levy;
• qualified reservist distributions;
• IRA owner’s death or disability;
• substantially equal periodic payments madeover life expectancy;
• timely removal of excess contributions;
• purchase of health insurance while unemployed– the purchase of a first home (up to $10,000);
• for certain higher educational expenses; or
• for the birth or adoption of a child (up to $5,000per child) subject to certain requirements.

Taxes typically apply to all earnings and all pre-tax contribution amounts when withdrawn, which will reduce accumulated amounts.

Withdrawals are tax-free if the account is open for at least five years and:

• the withdrawals are made after the individual attains age 59½ or becomes disabled;
• the withdrawals are made to purchase a first home (up to $10,000); or
• the withdrawals are made to a beneficiary after the IRA owner’s death.

Distributions that are not “qualified distributions” are includable in income to the extent attributable to earnings. For individuals under age 59½, a 10% early distribution penalty will typically apply to the taxable portion of the non-qualified distribution unless an exception applies.

• Rollover of a traditional IRA to a Roth IRA (“conversion”) is permitted with no income limitations.
• When a traditional IRA is converted to a Roth IRA, taxes must typically be paid on all pretax contribution amounts and earnings converted.
• Transfers and rollovers (within certain limits) to and from other Roth IRAs are generally permitted.

This information is general in nature and is not intended to constitute tax or estate-planning advice. Please consult your tax and/or estate-planning advisor for more detailed information and advice on your specific situation.

• Rollover of a traditional IRA to a Roth IRA (“conversion”) is permitted with no income limitations.
• When a traditional IRA is converted to a Roth IRA, taxes must typically be paid on all pretax contribution amounts and earnings converted.
• Transfers and rollovers (within certain limits) to and from other Roth IRAs are generally permitted.