Compare Traditional IRA vs Roth IRA+

Compare Traditional IRA vs Roth IRA

There are two primary types of IRAs (Traditional and Roth), both with tax advantages designed to help you save for retirement. Do you want a tax break now or later? Your answer will help you choose between a Traditional or Roth IRA.

You can open any of our IRA product options as a Traditional or Roth IRA. Compare IRA Product Options.

Or, chose other options to compare.

Traditional IRA

Best if you expect to be in a lower tax bracket in retirement.

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.

Minimum Required Distributions (MRD)

MRD Applies.

Minimum required distributions after age 70½.

Age Limits

Up to 70½.

Must be under age 70½ to contribute.

Mandatory withdrawals starting at age 70½.

Income Limits

No income limits.

Contribution Limit (tax year 2017)

$5,500.

Or $6,500 if you're over 50, subject to income limitations.

Roth IRA

Best if you expect to be in a higher tax bracket in retirement.

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 5 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.

Minimum Required Distributions (MRD)

Not subject to MRD.

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 Limit (tax year 2017)

$5,500.

Or $6,500 if you're over 50, subject to income limitations.

Did you find this information useful?+

Did you find this information useful?

Share the benefits of IRAs with family and friends.

Wait, what about a Rollover IRA?+

Wait, what about a Rollover IRA?

Chances are you likely have an old 401k or 403b 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?+

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. We want  to help you think  differently about retirement — more optimistically about tomorrow You may see yourself traveling, volunteering or simply spoiling your grandkids. Whatever your plans — we're in your corner.

We've put more  than 13 million people on the path toward retirement readiness, and no matter what your  goals may be, our goal remains the same. To help you retire better.

This material is provided for general and educational purposes only: it is not intended to provide legal, tax or Investment advice.  AlI investments are subject to risk. We recommend that you consult an independent or legal or financial advisor 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 thelr own particular circumstances from an independent tax advisor.

Retirement consultants offer securities and investment advisory services through Voya Financial Advisors, Inc., member SIPC.

Neither Voya nor its affiliated companies provide tax or legal advice. Please consult with your tax and legal advisors regarding your Individual situation.