|Roth IRA||Traditional IRA|
|Taxes||Pay right away.||Pay later, though Traditional IRAs are subject to deduction limits. A person may contribute to a Traditional IRA and be required to pay taxes right away.|
|Contributions||Withdraw anytime without taxes or penalties.||Might be tax-deductible.|
|Earnings||Withdraw tax- and penalty-free at age 59½ if account has been active for at least five years.||Grow tax-deferred. Generally subject to taxes when withdrawn, often in retirement.|
|Age restrictions||None.||Must be under age 70½.|
|Eligibility||Modified adjusted gross income limit (MAGI) for 2017 is $133,000 for single filers and $196,000 for married filing jointly.||No restrictions on contributions, but possibly on deductions.|
|Required minimum distributions (RMDs)||None.||Must begin taking at age 70½.|
Still Unsure About Roth vs. Traditional?
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