Regular IRA vs. Roth IRA Comparison
Which type of IRA is best for you depends on your situation, needs and objectives. The comparison that follows is designed to help you make an informed decision.
2015
| Traditional IRA (tax deductible) | Roth IRA | Traditional IRA (non-deductible) | |
| Deductible Contributions | Yes | No | No1 |
| Limit on Contributions | Yes (lesser of $5500; $6000 if age 50+; or 100% of earned income | Yes (lesser of $5500; $6500 if age 50+; or 100% of earned income | Yes (lesser of $5500; $6500 if age 50+; or 100% of earned income |
| Tax-Deferred Growth | Yes | Yes | Yes |
| Age Limits | Yes (contributions cannot be made after age 70-1/2) | No | Yes (contributions cannot be made after age 70-1/2) |
| Income Limits | No | Yes (contribution phased out if adjusted gross income exceeds specified limits | No |
| Min Distribution Requirements | Yes (distributions must begin by age 70-1/2) | No | Yes (distributions must begin by age 70-1/2) |
| Bankruptcy Protection | Original Owner: Yes, Up to $1 million for all IRAs Inherited IRA: No | Original Owner: Yes, Up to $1 million for all IRAs Inherited IRA: No | Original Owner: Yes, Up to $1 million for all IRAs Inherited IRA: No |
(1) Traditional IRA contributions are fully deductible from income unless an individual and/or spouse are active participants in an employer-sponsored retirement plan, including a tax-deferred annuity (TDA). In that event, the IRA deduction is gradually phased out as adjusted gross income exceeds specified limits, in which case an IRA contribution may be partially deductible or non-deductible.
