Traditional IRA vs. Roth IRA

An individual retirement account used to direct pre-tax income toward a tax advantaged savings vehicle. Tax-Deductions are based on the individual’s income, tax-filing status and whether they participate in an employer sponsored plan or not.

• Contributions are tax deductible but limited based on age
  
• Earnings in the account accumulate on a tax-free basis
  
• Distributions are taxed as ordinary income
  
• You must begin taking required minimum distributions at the age of 70½

An individual retirement account used to direct after-tax income into a tax-advantage savings vehicle. These accounts are subject to income restrictions, for those individuals whose income is to high they are not eligible to participate.

• Contributions are not tax deductible and they are limited
  
• Earnings in the account accumulate on a tax-free basis
  
• Distributions are tax-exempt, if certain requirements are met
  
• There are no required minimum distributions