The information provided herein is for informational purposes only and is not intended as a substitute for professional advice. Please consult your tax advisor with respect to the information and how it relates to you.
Funded with after-tax dollars.
Earnings and qualified withdrawals are tax-free.
Contributions are not tax deductible.
Limitations applyFunded with pre-tax dollars.
Earnings are tax-deferred.
Contributions are tax-deductible up to certain income limits.
Limitations applyThink your tax rate will be higher when you withdraw? Go with a Roth IRA.
Think your tax rate will be lower when you withdraw? Choose a Traditional IRA.
(limits based on income and tax filing status).
(income limits apply for tax-deductible contributions)
Withdraw earnings without IRS penalty at age 59½ if your account is at least 5 years old.
Withdraw contributions and earnings without IRS penalty at age 59½.
Distributions are required to start by age 70½ if you were 70½ by 12/31/2019. Distributions are required to start by age 72 if you turned 72 from 1/1/2020 to 12/31/2022. If you turned 73 in 2023 or years following, distributions will not be required until you are age 73.
When you contribute funds, you’ll be depositing money that is not presently deposited in any type of retirement account. The IRS imposes annual limits on how much you can contribute. You may want to contact a financial advisor or tax professional for further information.
When you rollover funds, you receive the funds through a distribution from your IRA. You then have 60 days from receipt of those funds to roll them into another IRA or qualified retirement plan to avoid tax consequences. IRA owners are limited to only one IRA-to-IRA rollover in any 12-month period. Rollovers are not counted toward your annual contribution limits. You may want to contact a financial advisor or tax professional for further information.
When you transfer an IRA, the funds are moved directly from one financial institution to another. The transfer check is made payable to your financial institution for your benefit. Because you don’t handle the funds directly, the transaction is not considered a distribution. There is no limit to the number of transfers you can make.