|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taxes or penalties.||Withdraw anytime but deductible contributions are taxable and generally subject to penalties if withdrawn before age 59½.
|Withdrawal of Earnings||Tax- and penalty-free when withdrawn at age 59½ if account has been active for at least five years.
||Taxable when withdrawn and generally subject to penalties if withdrawn before age 59½.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.|
Still Unsure About Roth vs. Traditional?
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.
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.