An Individual Retirement Account (IRA) can be a wise financial choice. IRAs are specifically designed to help you build retirement savings and offer tax benefits and the flexibility to tailor your retirement plan. You can choose between a Traditional or Roth IRA!
Let us help put your mind at ease with our retirement options so you can achieve your retirement goals. Our IRA Specialists are here to assist in selecting the right retirement plan that fits your needs, contact an office near you!
| Account Type | Traditional IRA | Roth IRA |
|---|---|---|
Account Type Benefits | Traditional IRA
| Roth IRA
|
Account Type What is it? | Traditional IRA A personal tax-favored savings account that allows for tax-deductible contributions for most people. Earnings are not taxed until you begin to withdraw from your Traditional IRA. | Roth IRA While contributions to your Roth IRA are not tax deductible, the best part is what happens when you withdrawal from the account. Provided certain conditions are met, withdrawals are tax-free and penalty-free. |
Account Type Who is eligible to contribute? | Traditional IRA An individual who has earned income is eligible to contribute. You are permitted to participate in another retirement plan, such as one sponsored where you work. For married couples, you and your spouse may each have your own IRA; however, you may not have a joint IRA. | Roth IRA An individual who has taxable compensation, or is married filing jointly and his or her spouse has taxable compensation, there is no age limit for contributing. Income limits apply. |
Account Type How much can I contribute? | Traditional IRA For 2023, the contribution limit is $6,500 if you are under age 50, and $7,500 if you are age 50 and older. Call for information on additional guidelines and requirements. | Roth IRA For 2023, the contribution limit is $6,500 if you are under age 50, and $7,500 if you are age 50 and older. Call for information on additional guidelines and requirements. |
Account Type When can I make contributions? | Traditional IRA Contributions for a year may be made up to the tax-filing deadline (usually April 15th) for that year, not including extensions. | Roth IRA Contributions for a year may be made up to the tax-filing deadline (usually April 15th) for that year, not including extensions. Remember, there is no maximum age limit; if you are working, contributions can be made for the year. |
Account Type Are contributions tax deductible? | Traditional IRA Your contributions are fully deductible if, for the year you contribute, you (you and your spouse, if married) do not actively participate in a retirement plan at work; however, you (or your spouse) may be eligible for either a full or a partial deduction based on your tax-filing status and income. If your income exceeds the limits set for that year, no deduction will be allowed. | Roth IRA Never is federal income tax deductible however; you can convert all or part of your Traditional IRA or workplace retirement plan (WRP) to a Roth IRA. Call for more details. |
Account Type Are distributions subject to IRS 10% early distribution penalty? | Traditional IRA The taxable portion is subject to the IRA 10% early distribution penalty, unless the individual is age 59½ or older, or an exception applies. | Roth IRA Same as Traditional, except conversion funds that are distributed within five years are also subject to the IRS 10% penalty, unless the individual is age 59½ or older, or an exception to the penalty applies |
Account Type When must distributions begin? | Traditional IRA Contact our IRA Department for the most current information concerning Required Minimum Distribution (RMD) dates. | Roth IRA Not required during the owner’s lifetime but can be taken out at anytime. |
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Which is better, a Traditional IRA or a Roth IRA? Traditional IRAs offer tax-deferred earnings and tax-deductible contributions. Roth IRAs offer tax-free earnings, but contributions are not deductible.
Use this calculator to find out how long you can make recurring withdrawals of a specified amount from your savings account.
The monthly payment calculated factors in both the principal and interest. It does not factor in other mortgages costs such as annual property tax, HOA fees, PMI, etc.
These financial calculators are made available as tools for your independent use. We cannot and do not guarantee their accuracy or their applicability to your circumstances. We encourage you to seek advice from qualified professionals regarding personal finance issues.
Which is better, a Traditional IRA or a Roth IRA? Traditional IRAs offer tax-deferred earnings and tax-deductible contributions. Roth IRAs offer tax-free earnings, but contributions are not deductible.
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Calculator tips
This calculator uses annual compounding. Annual deposits start today and the final withdrawal amount is available one year after the last deposit.
The after tax amount assumes that the Roth balance is taxed at retirement date, rather than as the funds are withdrawn.
Your actual qualifying contribution may differ significantly from the amounts listed above (for reasons such as income, filing status, employer benefits, and more). We strongly recommend that you consult your tax advisor before contributing to a retirement program. Qualifying contributions are usually limited as follows:
Year Annual Contribution Limit
2002 through 2004 $3,000 per individual
2005 through 2007 $4,000 per individual
2008 through 2012 $5,000 per individual
2013 onward* $5,500 per individual
* Beginning in 2009, the contribution limit will adjust annually for inflation in $500 increments.
If you are age 50 or over, you may qualify for an additional catch-up contribution as follows:
Year Additional Catch-Up Contribution
2002 through 2005 $500 per individual
2006 onward $1,000 per individual
Your actual qualifying contribution may differ significantly from the amounts listed above (for reasons such as income, filing status, employer benefits, and more). We strongly recommend that you consult your tax advisor before contributing to a retirement program.
Calculator disclaimer
The information provided by these calculators is intended for illustrative purposes only and is not intended to purport actual user-defined parameters. The default figures shown are hypothetical and may not be applicable to your individual situation. Be sure to consult a financial professional prior to relying on the results.
Use this calculator to find out how long you can make recurring withdrawals of a specified amount from your savings account.
All fields are required.
Calculator tips
This calculator assumes that periodic withdrawals will start on the first day of the current month and that Daily compounding is used for the accrual of interest on your savings.
Calculator disclaimer
The information provided by these calculators is intended for illustrative purposes only and is not intended to purport actual user-defined parameters. The default figures shown are hypothetical and may not be applicable to your individual situation. Be sure to consult a financial professional prior to relying on the results.
