If the chart below does not appear fully displayed, use the scroll bar at the bottom of the chart to view all the available IRA account types.
| Traditional | Roth | Simplified Employee Pension (SEP) | Coverdell Education Savings Account (ESA) | |
|---|---|---|---|---|
Contribution Limit |
$5,000/year |
$5,000/year |
See tax advisor |
$2,000 per child/year |
Annual Custodial Fee |
$10 |
$10 |
$10 |
$10 |
Eligibility |
Earned Income from employment Under 70 ½ | Earned income from employment No age limit | Earned Income from employment Under 70 ½ |
|
Tax Benefits * May be tax-deductible |
Contributions* You may qualify for a tax credit Money grows tax deferred Withdrawals are taxed |
Contributions are after-tax Contributions are not tax deductible Money grows tax deferred Qualified withdrawals are not taxed |
Contributions* You may qualify for a tax credit Money grows tax deferred Withdrawals are taxed |
No tax deductions Qualified withdrawals are tax-free Money grows tax-deferred |
Withdrawals |
Allowed at age 59 ½ RMDs begin at age 70 ½ Withdrawals are added to taxable income Early withdrawals may incur taxes and tax penalties Transfers and rollovers are not taxable events |
Allowed at age 59 ½ IRA must be established for 5 years No RMD Withdrawals are not added to taxable income Early withdrawals may incur a tax penalty Transfers and rollovers are not taxable events |
Allowed at age 59 ½ RMDs begin at age 70 ½ Withdrawals are added to taxable income Early withdrawals may incur taxes and tax penalties Transfers and rollovers are not taxable events |
Allowed for qualified education expenses before age 30 Other withdrawals may incur tax penalties Transfers and rollovers are not taxable events |