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Roth vs Pre-Tax

Roth IRATraditional IRA
Who's EligibleRequires earned income. May or may not be allowed to contribute depending on incomeAnyone with earned income may contribute. May or may not be able to deduct on taxes depending on income.
Tax Advantages of ContributionsNot tax-deductible.Possibly tax deductible depending on income
Age limitNo age limit.No age limit. (SECURE ACT eliminated age requirement)
Annual limits on Contributions2020 IRS limit of $6000; if age 50 or older an additional $1000. Contributions are dependent on your income2020 IRS limit of $6000; if age 50 or older an additional $1000. Can contribute regardless of income but may not be tax deductible.
Conversionn/aYou may be able to convert a traditional IRA to a Roth IRA depending on your financial situation.
Withdrawals of ContributionsContributions can be withdrawn at any time without taxes or penalties.Deductible contributions are taxable upon withdrawal. Penalties will be assessed if withdrawals are taken before age 59½ or if withdrawals are not taken by age 72 . 10% penalty of assets. Taxed upon withdrawal; if meet eligibility taxed as ordinary income tax
Withdrawals of EarningsAny earnings can be withdrawn without taxes or penalties if you are age 59½ or older and your account has been open five years or more.Any earnings are taxable upon withdrawal. Penalties will be assessed if withdrawals are taken before age 59½ or if withdrawals are not taken by age 72. Taxable upon withdrawal; earnings are taxed at your income tax rate in the year you take the withdrawal.
Distributions - Required Minimum Distributions (RMD)No requirements.Required Minimum Distributions upon reaching age 72
Considered Income when withdrawnEarnings from a Roth IRA are not considered income as long as withdrawals are qualified.Both contributions and earnings are considered income unless contributions were not tax deductible
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