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	No tax on principle or interest when the money is withdrawn.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.