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 No tax on principle or interest when the money is withdrawn.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


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