Compare IRAs

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Review the various options below to decide what type of IRA is right for you.

 

Tax Advantages

Eligibility Contribution Limits Withdrawal Guidelines
  Earnings Contributions   Under Age 50 Age 50 or Older  
Traditional Tax Deferred Potentially Deductible
  • Must have earned income

AND

  • Under age 70½
$5,500 for the 2014 and 2015 tax years $6,500 for the 2014 and 2015 tax years
  • Federal penalties and taxes apply to withdrawals before age 59½
  • Penalty-free withdrawal at any age to make a qualified first-home purchase (up to $10,000) or to meet qualified higher-education expenses. Additional exceptions also apply.
Roth Tax Free Not Deductible
  • Must have earned income

AND

  • Must meet adjusted gross income requirements
$5,500 for the 2014 and 2015 tax years $6,500 for the 2014 and 2015 tax years
  • Penalty-free/tax-free withdrawal of original contributions at any age.
  • Federal tax-free withdrawal of earnings after 5 years AND age 59½
  • Penalty-free withdrawal up to $10,000 at any age to make a qualified first-home purchase. Additional exceptions also apply.
SEP Tax Deferred Tax Deductible (some limitations apply) Anyone who:
  • is a sole proprietor

OR

  • is in a business partnership

OR

  • is a business owner

OR

  • has self-employment income earned by providing a service

OR

  • is an employee of someone who establishes a SEP IRA for his/her employees
  • 25% of employee's compensation
  • $53,000 per participant in 2015 and $52,000 per participant in tax year 2014

Whichever is highest limit
allowed by law

  • Federal penalties and taxes apply to withdrawals before age 59½
  • Penalty-free withdrawal at any age to make a qualified first-home purchase (up to $10,000) or to meet qualified higher-education expenses. Additional exceptions also apply.
SIMPLE Tax Deferred Tax Deductible (some limitations apply) Anyone who:
  • is a business owner with 100 or fewer employees

OR

  • is in a business partnership

OR

  • has self-employment income earned by providing a service

OR

  • is an employee of someone who establishes a SIMPLE IRA for his/her employees
$12,000 for 2014, and $12,500 for the 2015 tax year. $14,500 for 2014, and $15,500 for the 2015 tax year.
  • 25% early distribution penalty if withdrawn during the first two years of participation and if the owner is under age 59½; after the 2 year period, the 10% early distribution penalty applies if withdrawn prior to age 59½.
  • Penalty-free withdrawal at any age to make a qualified first-home purchase (up to $10,000) or to meet qualified higher-education expenses. Additional exceptions also apply.
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