Required Minimum Distributions
Same annual contribution limit as the Roth with a catch-up contribution available for those age 50 and over.
Contributions may be deductible based on tax filing status and active participation in an employer plan.
No income limit on contributions, only on deductibility.
No contributions can be made after taxpayer reaches age 70½.
Earnings grow tax deferred.
Distributions may be taken at any time and and will be treated as ordinary income. Distributions may be subject to the 10% early withdrawl penalty if withdrawn before age 59½.
Traditional IRA owners must begin minimum distributions by April 1 of the year they turn 70½, and traditional IRA beneficiaries are subject to RMD rules.
Can accept rollovers from traditional IRAs, SIMPLE IRAs, SEP-IRAs, qualified plans, 403(b) plans, and governmental 457 plans.
Same annual contribution limit as the traditional IRA, with a catch-up contribution available for those age 50 and over.
Contributions are never deductible.
Income limits may prevent a taxpayer from making contributions.
No age limit on contributions.
Earnings grow tax deferred, and for qualified distributions, earnings are withdrawn tax free.
Distributions may be taken at any time and are tax and penalty free if qualified. Non-qualified distributions may be subject to the 10% early withdrawal penalty
Roth IRA owners are not required to take minimum distributions, although Roth IRA beneficiaries are also subject to RMD rules.
Can accept rollovers from Roth IRA and Roth 401(k) accounts. Can convert a traditional IRA or a qualified plan to a Roth IRA.