Our Recent Posts

Archive

Tags

No tags yet.

Roth IRA vs. Traditional IRA


The two main types of IRAs that can help you save for retirement are Traditional and Roth.

What's the same

  • Contribution limits – $5,500 (age 49 and under); $6,500 age 50 and older

  • Contribution deadline – Tuesday, April 17, 2018 (for the 2017 tax year)

  • Minimum investments – No minimum to open a Fidelity IRA

  • Fees – No setup or maintenance fees; no transaction fees for most Fidelity mutual funds

  • Note: A Rollover IRA is a Traditional IRA often used for rollovers from an old workplace plan, such as a 401(k).

Whats Different

Tax Benefits

Roth IRA: Tax-free growth and tax-free qualified withdrawals.

Traditional IRA: Tax-deferred growth and tax-deductible contributions.

Age requirements

Roth IRA: Contribute at any age.

Traditional IRA: Contribute until you're 70½.

Income requirements

Roth IRA:

Traditional IRA: