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If you’re looking to fund an IRA, you might be wondering which type of IRA (Roth or Traditional) is the most
appropriate choice. The chart below illustrates the differences between the two and may help determine which one
may be right for you.

Traditional IRA Roth IRA

2018 Contributions
2019 Contributions
Up to $5,500 for 2018. Savers over 50 may be eligible to contribute an additional $1,000.
Up to $6,000 for 2018. Savers over 50 may be eligible to contribute an additional $1,000.

Eligibility Must have earned income and be
younger than age 70 1/2.		 Anyone with earned income can contribute as
long as their income is within phase out range.
Taxes
Contributions grow tax-deferred and
may be tax-deductible.
Taxes are generally paid upon
withdrawal, at which time retirees may
be in a lower tax bracket.
Tax-free growth potential. Contributions
grow tax-deferred like the Traditional
IRA.
No taxes are due on the gains for qualified
withdrawals after age 59 ½ (other options
may be available) and after the account has
been open for 5 years.
Deductibility
100% deductible if not covered by an
employer plan.
If you are covered by an employer
plan, deductibility is subject to income
phase out limits.
Contributions are not deductible.
Withdrawal Rules
You must begin taking withdrawals
April 1 following the year you turn
70 ½.
Contributions can be withdrawn at any time,
tax-free and penalty free. After five years and
age 59 ½, all withdrawals are tax-free. There
are no required distributions.
Contribution Deadline Tax filing deadline (April 15, 2019, for 2018 contributions).

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