Traditional vs. Roth

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Tax Advantages

Tax-deferred growth potential.

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

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

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.

Eligibility

Age	You must be under age 70½ and have earned income in order to make contributions.	No age restrictions, but you must have earned income in order to make contributions.
Maximum Income	No restrictions on eligibility to contribute, but possibly on deductibility.	May not be eligible if your income is over $120,000 for single filers and $177,000 for joint filers for 2010 ($120,000 for single filers and $176,000 for joint filers for 2009).
Minimum Income	Earned income must be equal to or greater than your annual contributions.	Earned income must be equal to or greater than your annual contributions.

Maximum Contributions

2009	$5,000 ($6,000, if you are 50 or older in 2009)	$5,000 ($6,000, if you are 50 or older in 2009)
2010	$5,000 ($6,000, if you are 50 or older in 2010)	$5,000 ($6,000, if you are 50 or older in 2010)

Minimum Contributions

$1,000, or $50 per month with our Automatic Asset Builder Service

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