Compare the benefits of a Roth IRA to a Traditional IRA to see what best fits your retirement savings needs. Each type of IRA offers its own tax advantages, eligibility requirements, and contribution limits. Review the Roth IRA and Traditional IRA comparison information below or use our Roth IRA vs. Traditional IRA selection tool.

Key Differences
 

Roth
IRA

Traditional
IRA

Eligibility Requirements
Age

No age restrictions.

You must be under age 70½ to contribute.
Maximum Income

May not be eligible if your income is over $129,000 for single filers and $191,000 for joint filers for the 2014 tax year or over $131,000 for single filers and $193,000 for joint filers for the 2015 tax year.

No restrictions on eligibility to contribute, but possibly on deductibility.

Minimum Income

Earned income must be equal to or greater than your annual Roth IRA contributions.

Earned income must be equal to or greater than your annual Traditional IRA contributions.

Tax Advantages
 

Tax-free growth potential.

You pay no taxes when you make qualified withdrawals after age 59½ and your account has been open at least five years.

Tax-deferred growth potential.

You generally pay taxes when you make withdrawals, at which time you may be in a lower tax bracket.

Your Traditional IRA contributions may be tax-deductible if you or your spouse does not participate in an employer-sponsored plan.

Contributions
Maximum
(2014 and 2015)

$5,500 ($6,500 if you are 50 or older)

Use IRA AutoMax to automatically contribute the maximum amount every year.

Minimum

$1,000 to open an Account. $100 per transaction for any additional contributions which can be set up with our Automatic Asset Builder service.

Open a Roth IRA

Open a Traditional IRA