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Kalamazoo County State Bank

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 $5,500
Aggregated with Roth IRA contribution
If age 50 or older an additional $1,000 is permitted for a total of $6,500
Lesser of 100% of earned income or $5,500 - Subject to MAGI limits
Aggregated with traditional IRA contribution
If age 50 or older an additional $1,000 is permitted for a total of $6,500 
Deductible
Contributions
YES - Subject to MAGI Limits NO
Single Filers:
MAGI Limits
for 201
4
$60,000 or less = full deduction
$60,000 to $70,000 = partial deduction
$70,000 or more = no deduction
$114,000 or less = full contribution
$114,000 to $129,000 = partial contribution
$129,000 or more = no contribution
Married / Joint Filers:
MAGI Limits
for 201
4
$96,000 or less = full deduction
$96,000 to $116,000 = partial deduction
$116,000 or more = no deduction
$181,000 or less = full contribution
$181,000 to $191,000 = partial contribution
$191,000 or more = no contribution
Married / Separate Filers:
MAGI Limits
for 201
4
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Earnings withdrawn for nonqualified reasons are taxable
Contributions are not taxed when withdrawn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
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