Traditional vs. Roth IRA
There are two distinct types of IRAs and each strategy can be beneficial to your income planning. Check out our resources below to learn more about these savings vehicles.
Traditional vs. Roth IRA calculator
Check out our calculator to see the difference between a Traditional and Roth IRA for your specific situation.
Traditional IRA
Your contributions are made before tax so earnings reinvest improving potential savings growth over time.
Features:
Tax benefits
Tax-deferred growth. You get a tax break up front and pay taxes later. Contributions are tax-free and earnings grow tax-deferred.
Early withdrawal penalty
Yes. You may be subject to a 10% for withdrawals before age 59½, unless an exception applies.
Required Minimum Distributions (RMD)
RMD applies as follows:
| Age 73 | for an individual who attains age 72 after December 31, 2022, and age 73 before January 1, 2033 |
| Age 75 | for an individual who attains age 74 after December 31, 2032 |
Age limits
Mandatory withdrawals as follows:
| Age 73 | for an individual who attains age 72 after December 31, 2022, and age 73 before January 1, 2033 |
| Age 75 | for an individual who attains age 74 after December 31, 2032 |
Income limits
No income limits.
Contribution limits
View Current Contribution Limits
Roth IRA
Your contributions are made after taxes for tax-free growth and potential tax-free income in retirement.
Features:
Tax benefits
Tax-deferred growth. You pay taxes up front and get a tax break later. Contributions are taxed as income and earnings grow federal tax-free if owned over five years.
Early withdrawal penalty
Yes, for earnings. No penalty for withdrawal contributions, but you may be subject to a 10% penalty for withdrawing earnings before age 59½.
Required Minimum Distributions (RMD)
Not subject to RMD.
Age limits
No age limits. No age limits for contributions or withdrawals.
Income limits
Some income limits. Depending on your income and tax filing status.
Contribution limits
Consider a Rollover IRA
Chances are you likely have retirement savings plan from a previous job that you’re not quite sure what to do with. A Rollover IRA is simply a Traditional or Roth IRA that can be used to transfer money from a former employer’s retirement plan into an IRA.
Why choose Voya
When you choose Voya, you’re choosing to invest with people who care. We believe that everyone deserves a secure financial future, and with our expert guidance, holistic offerings and investment integrity, we can help make that possible. Learn more about how we are keeping Americans well planned, well invested and well protected.
This material is provided for general and educational purposes only; it is not intended to provide legal, tax or investment advice. All investments are subject to risk. When redeemed, an investment may be worth more or less than the original amount invested. Neither Voya nor its affiliated companies provide tax or legal advice. We recommend that you consult an independent tax, legal or financial professional for specific advice about your individual situation.
The tax information herein is not intended to be used, and cannot be used by any taxpayer, for the purpose of avoiding tax penalties. Taxpayers should seek advice based on their own particular circumstances from an independent tax advisor.
Investment adviser representative and/or registered representatives of, and securities and investment advisory services offered through Voya Financial Advisors, Inc. (member SIPC). Investment advisory services are only offered through Investment adviser representatives of Voya Financial Advisors.
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