401k Rollover Center- You don't have to Leave your Retirement plan behind
Free 401k Rollover Analysis

Traditional IRAs vs. Roth IRAs

  Traditional IRA Roth IRA
Eligibility Income, under age 70 ½ Income under:
  • Single- $110,000
  • Married-$160,000
Contribution Max. - $2,000 Max. - $2,000
Deductibility Full if employer does not offer plan. Not Deductible
Tax Advantages of Contributions Within certain income limits: Single - $41,000 Married - $61,000 Tax deferred, more real money working for investments. No tax on principle or interest when the money is withdrawn.
Tax Penalties 10% excise tax if money is taken prior to age 59 ½ , with certain exceptions. 10% excise tax if money is taken prior to age 59 ½ and held less than 5 years, with certain exceptions.
Required Distributions Must start by April 1st after age 70 ½ . No required distributions.

 


Home | 401K Learning Center | Glossary of Industry Terms | Request a Free 401K Analysis | 401K Related Articles

© 2003-2018, 401k Rollover Center.com, All rights reserved.

Insurance Agents - Join Our Network