The following is printed from www.sitfunds.com
The following is printed from www.sitfunds.com
Aren't sure which type of IRA is best for you? Compare the differences:
| Traditional IRA | Roth IRA | |
| Key Advantage | Tax-deferred growth; contributions may be deductible | Tax-free growth if the account is open for five years and you are at least 59 1/2 when distributions are made |
| Who's Eligible | Anyone under age 70½ who has earned income | Anyone who has earned income who is under the maximum income phaseout limits |
| Maximum Contribution | Tax Year 2009: $5,000 ($6,000 if age 50 or over) Tax Year 2010: $5,000 ($6,000 if age 50 or over) |
Tax Year 2009: $5,000 ($6,000 if age 50 or over) Tax Year 2010: $5,000 ($6,000 if age 50 or over) |
| Tax Deduction Permitted | Depends on your annual income and whether you or your spouse were covered by an employer-maintained retirement plan during the year | No |
| Required Distributions | Yes, annually beginning at age 70½. | No, unless you inherited a Roth IRA. |
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