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Roth or Traditional: 
Which IRA is right 
for you?

Roth or Traditional IRA

If you’re looking for a tax-advantaged way to save for retirement, two good options are the Traditional IRA and a Roth IRA. Each have their unique advantages, and the one you choose will largely depend on your earnings needs and circumstances. To help you get started, here’s an overview of each type of IRA and a comparison below for details on contributions, restrictions, and more.

Traditional IRA

    • Contributions to a Traditional IRA may be tax deductible (depending on income level).
    • Earnings can grow federal tax-deferred.
    • A Traditional IRA is available to everyone who earns income under the age of 70½.
    • At 70½ you must begin taking an annual required minimum distribution (RMD).

Roth IRA

  • May allow you to avoid future taxation of retirement funds by making nondeductible contributions now.
  • No upfront tax deduction for contributions.
  • All earnings are federal tax-free when they are withdrawn according to IRS rules.
  • No required minimum distribution (RMD).

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