The table below shows a comparison between Traditional, Rollover, and Roth IRAs. It is a guide to help you compare and contrast the components of the IRAs and give you an overall and general idea of the differences between them. |
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| Traditional IRA | Rollover IRA | Roth IRA | |
| Who can invest? | Anyone under age 70 ½ with earned income. | Anyone receiving an eligible distribution from an employer retirement plan. | Anyone with earned income. |
| Maximum Annual Contributions | $2,000 # | No Limit | $2,000 (Subject to reduction based on AGI) # |
| Tax Deductible | Yes (Subject to AGI limits for participants in employer-sponsored retirement plans. | Not Applicable | No |
| Maximum AGI Limits | |||
| Single Filers Joint Filers |
$30,000 - $40,000 * $50,000 - $60,000 * |
No Limit No Limit |
$95,000 - $110,000 $150,000 - $160,000 |
| SSR Fund Share Class | A,B,C | A,B,C | A,B,C |
| Annual Fee | $10 | $10 | $10 |
| Conversion to Roth IRA | Yes, for those with under $100,000 AGI; amount converted is subject to income taxes. ** | No | Not Applicable |
| Age 70 ½ Minimum Distribution | Yes | Yes | No |
| Tax-Free Withdrawals | No | No | 5 years and one of the following: age 59 ½, death, disability, 1st time home purchase ($10,000 lifetime limit) |
| Withdrawals without 10% Penalty Tax | Age 59 ½, death, disability, education expenses, 1st time home buyer expenses ($10,000 lifetime benefit), one of a series of equal periodic payments, for deductible medical expenses, or for medical spread over four years. | ||
# Combined contribution to both Traditional and Roth IRAs cannot exceed $2,000. * 1998 limits. Will increase over the next several years. ** For conversions in 1998, taxable income can be spread over four years. |
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