Traditional IRAs vs. Roth IRAs
||Income, under age 70 ½
|| Income under:
- Single- $110,000
||Max. - $2,000
|| Max. - $2,000
||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|| No tax on principle or interest when the money is withdrawn.
||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.
||Must start by April 1st after age 70 ½ .
|| No required distributions.
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