When it comes to making a thoughtful decision between a Roth IRA and a Traditional IRA, it helps to understand the differences.

  Roth IRA Traditional IRA
Taxes Contributions made are not deductible. Contributions made can be tax-deductible or non-deductible. Deductibility of contributions depends on active participation in a retirement plan and your modified adjusted gross income (MAGI) not exceeding certain amounts.
Withdrawal of contributions
Withdraw anytime without taxes or penalties. Withdraw anytime but deductible contributions are taxable and generally subject to penalties if withdrawn before age 59½.
Withdrawal of Earnings Tax- and penalty-free when withdrawn at age 59½ if account has been active for at least five years.
Taxable when withdrawn and generally subject to penalties if withdrawn before age 59½.
Age restrictions None.   Must be under age 70½ during the tax year of the contribution.
Eligibility May contribute only if, depending on filing status, MAGI does not exceed certain amounts. You must have US earned income.
No restrictions on contributions. You must have US earned income.  
Required minimum distributions (RMDs) None during your lifetime. Must begin taking for the year in which you reach age 70½.

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Why T. Rowe Price for a Roth or Traditional IRA?

Low Fees and Minimums.


You need to maximize your return potential, so we work to keep our fees competitive. That's why our solutions include no-load mutual funds with low expense ratios. Keep in mind that a Traditional IRA/Roth IRA may be subject to an annual fee, and a fee may be assessed when a Traditional IRA/Roth IRA is closed. Here's more information on fees.

Convenient and Flexible Fund Choices.


You can choose from target date funds with strategic asset allocation and diversification, or select from more than 100 mutual funds to suit your investing needs.

A Global Investing Network in Pursuit of Your Goals.


Our highly tenured global investment professionals are continuously assessing potential risk, while identifying opportunities to maximize growth potential over the long term so you have more money in retirement. 

Want to Move Existing Savings Into a Roth IRA?
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Roll over a 401(k)

A Rollover IRA is one of several options to consider for your former workplace retirement plan, such as a 401(k).


Explore your options

Roll over now


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Transfer an existing IRA

If you decide to transfer an IRA, we offer over 100 mutual funds from which to choose. And we make it easy by handling most of the paperwork, too.

Transfer an IRA now

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Convert your T. Rowe Price Traditional IRA to a Roth IRA

A Roth IRA offers many advantages over a Traditional IRA, like potentially tax-free withdrawals if you need them.

Convert now