|
Traditional IRA |
Roth IRA |
| Eligibility |
You must be under 70 1/2 years old. |
Available for all ages. |
Contribution limits
(2009 - 2010) |
$5,000
$6,000
(if age 50 or older by 12/31/10) |
$5,000
$6,000
(if age 50 or older by 12/31/10) |
| Contribution deadline |
IRAs must be opened by April 15 the prior tax year, for previous tax year benefits. |
| Income limit |
Anyone is eligible to contribute, but not everyone will receive the tax benefit. |
Up to $105,000 for Single filers.
Up to $167,000 for Married (combined annual income).
|
| Advantages |
Earnings are tax-deferred until withdrawn. This may help you decrease your taxable income to a lower tax bracket.
No income restrictions.
|
Tax free withdrawals on the principal and all earnings.
No mandatory distribution age.
No minimum withdrawal requirement.
|
| Disadvantages |
Withdrawals before 59 1/2 are subject to a 10% penalty.1 |
Contributions are not deducted from your taxable income. |
| Current Rates |
View |
View |
