IRA Comparison Chart

Comparison	Traditional IRA	Roth IRA
Eligibility	Under age 70 1/2 Earned Income	Earned Income - Subject to Modified Adjusted Gross Income (MAGI) Limits
Contributions Limits	Lesser of 100% of earned income or $5,000 Aggregated with Roth IRA contribution If age 50 or older an additional $1,000 is permitted for a total of $6,000	Lesser of 100% of earned income or $5,000 - Subject to MAGI limits Aggregated with traditional IRA contribution If age 50 or older an additional $1,000 is permitted for a total of $6,000
Deductible Contributions	YES - Subject to MAGI Limits	NO
Single Filers: MAGI Limits for 2012	$58,000 or less = full deduction $58,000 to $68,000 = partial deduction $68,000 or more = no deduction	$110,000 or less = full contribution $110,000 to $125,000 = partial contribution $125,000 or more = no contribution
Married / Joint Filers: MAGI Limits for 2012	$92,000 or less = full deduction $92,000 to $112,000 = partial deduction $112,000 or more = no deduction	$173,000 or less = full contribution $173,000 to $183,000 = partial contribution $183,000 or more = no contribution
Married / Separate Filers: MAGI Limits for 2012	N/A = full deduction less than $10,000 = partial deduction $10,000 or more = no deduction	N/A = full contribution less than $10,000 = partial contribution $10,000 or more = no contribution
Tax-Deferred Earnings	YES	YES
Taxation Issues On Withdrawals	Earnings and deductible contributions are taxable Nondeductible contributions are not taxed Withdrawals are a ratio of deductible and nondeductible amounts	Earnings withdrawn for nonqualified reasons are taxable Contributions are not taxed when withdrawn Withdrawals are considered to be the return of contributions first, then earnings
Age 70 1/2 Required Minimum Distributions	YES	NO

Home | Personal | Business | Mortgages | Locations | About Us