IRA Account Type Chart
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 |
| 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 |
|
