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 $7,500 in 2026, or $8,600 if age 50 or above, based on working spouse's income.

• No age limit, you must have a modified adjusted gross income (MAGI) below $153,000 if single or $242,000 if married and filing jointly.
• The maximum contribution limit is phased out for those individuals with AGI between $153,000 and $168,000 (single) and $242,000 and $252,000 (joint).
• A non-working spouse is also eligible to contribute up to $7,500 in 2026, or $8,600 if age 50 or above. The same higher annual maximum contribution limits apply

2026: $7,500 annually

2026: $7,500 annually

If you are age 50 or older in the year of the contribution, eligible IRA holders can make an additional contribution of $1,100.

If you are age 50 or older in the year of the contribution, eligible IRA holders can make an additional contribution of $1,100.

• 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• Taxes are not paid on deductible contributions and all earnings until money is withdrawn.

Investment growth is tax-deferred and earnings can be withdrawn tax-free if the account has been open for at least five years and if certain requirements are met.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 2026 does not exceed $81,000 (single) or $129,000 (joint).
• Your spouse, but not you, is an active participant in an employer-sponsored retirement plan, and (subject to certain phaseout provisions) your MAGI is $242,000 or less.

• Contributions are not tax-deductible

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Taxable amounts withdrawn prior to age 59 ½ may be subject to an additional 10% penalty tax.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

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.