Compare IRAs

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

Tax Advantages

EligibilityContribution LimitsWithdrawal Guidelines
EarningsContributionsUnder Age 50Age 50 or Older
TraditionalTax DeferredPotentially Deductible
  • Must have earned income

AND

  • Under age 70½
$5,500 for the 2013 and 2014 tax years$6,500 for the 2013 and 2014 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.
RothTax FreeNot Deductible
  • Must have earned income

AND

  • Must meet adjusted gross income requirements
$5,500 for the 2013 and 2014 tax years$6,500 for the 2013 and 2014 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.
SEPTax DeferredTax 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
  • $52,000 per participant in 2014 and $51,000 per participant in tax year 2013

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.
SIMPLETax DeferredTax 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 the 2013 and 2014 tax years$14,500 for the 2013 and 2014 tax years
  • 25% early distribution penalty if withdrawn during the first two years of participation and if the owner is under age 59½; after the 2 year period, the 10% early distribution penalty applies if withdrawn prior to age 59½.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.

C9190