FAQ | Roth IRA | Traditional IRA |
|---|---|---|
| Who can contribute? | You are eligible if your MAGI* is less than the limit set by Congress and you earn compensation (or your spouse ears compensation and you file a joint return). If your MAGI is too high to contribute the annual contribution limit, you may be able to make a smaller contribution. | You are eligible if you have not reached age 701/2 at the end of the year and you earn compensation (or your spouse earns compensation and you file a joint return). Anyone who has received a distribution from a qualified retirement plan and decides to roll over the proceeds of the plan |
| How much can I contribute? | - $7,000 for 2024 - For owners age 50 and older, your limits increase to $8,000 for 2024 - Cannot exceed compensation | - $7,000 for 2024 - For owners age 50 and older, your limits increase to $8,000 for 2024 - Cannot exceed compensation |
| What are the tax advantages? | - Earnings are tax-free if account is open for five tax years and withdrawn for a qualified reason (age 591/2, disability, death or a first-time home purchase**) - Not required to start withdrawals at age 701/2 | - Earnings grow tax-deferred until withdrawn. - Contributions may be tax-deductible. |
