Is a Traditional or Roth IRA right for you?
|Traditional IRA||Roth IRA|
|Can I open and contribute to an IRA at any age?||As of 2020, you can open and contribute to a Traditional IRA at any age.||Yes, you can open and contribute to a Roth IRA at any age.|
|Is there a limit on how much I can contribute to an IRA?||For 2022, you can contribute to a Traditional IRA up to:
For 2023, you can contribute to a Traditional IRA up to:
|For 2022, you can contribute to a Roth IRA up to:
For 2023, you can contribute to a Roth IRA up to:
|Are contributions to an IRA deductible?||Yes, contributions to a Traditional IRA are deductible depending on your income, filing status, or whether your covered by a retirement plan.||No, contributions to a Roth IRA are never deductible.|
|Are there required minimum distributions from an IRA?||Yes, RMD age beginning in the year 2023 has been changed from 72 to 73.
||No, you do not have to take distributions from a Roth IRA regardless of age.|
|Are distributions from an IRA taxable?||Distributions from a Traditional IRA are taxed as ordinary income. If you made nondeductible contributions, not all of the distribution is taxable.||Distributions from a Roth IRA are not taxed as long as they are qualified distributions.|