Compare IRAs to Find the Best Option For You

Examine the features of Traditional IRAs and Roth IRAs to see which is best

Compare IRAs to find the best choice for you and your family. Traditional IRAs and Roth IRAs each have unique features and benefits, and choosing the right one will depend on your personal needs and financial situation. Consider contribution restrictions, tax penalties and distribution benefits when deciding whether or not to add a Traditional or Roth IRA to your retirement portfolio.

Use the chart below to further compare IRAs

 

TRADITIONAL IRA

ROTH IRA

Age Limit to Contribute

Up to Age 70 ½

No Age Limit

Income requirements/limits

Earned income at least equal to IRA contribution; no income ceiling1

Earned income at least equal to IRA contribution; income ceiling depends on filing status2

Distribution requirements

Distributions must begin at age 70½. Remainder at death can pass to heirs.

No distribution requirements; entire account can pass to heirs

Tax treatment

  • Contributions potentially tax-deferred
  • Earnings grow tax-deferred
  • Distributions taxable
  • Contributions are not tax-deductible
  • Earnings grow tax-free
  • Qualified distributions are tax free

Maximum annual contributions

Under age 50:

  • $5,500 for tax year 2014
  • $5,500 for tax year 2013

Age 50 and older:

  • $6,500 for tax year 2014
  • $6,500 for tax year 2013

Same as Traditional IRA

Deductibility / Eligibility Requirements Based on Modified Adjusted Gross Income
(MAGI)

 

Traditional IRA

Roth IRA

Filing Status

Tax Year 2014

Tax Year 2013

Tax Year 2014

Tax Year 2013

Single

$60,000 - $70,000 deductibility phaseout

$59,000 - $69,000 deductibility phaseout

$114,000 - $129,000 eligibility phaseout

$112,000 - $127,000 eligibility phaseout

Married filing jointly

$96,000 - $116,000 deductibility phaseout

$95,000 - $115,000 deductibility phaseout

$181,000 - $191,000 eligibility phaseout

$178,000 - $188,000 eligibility phaseout

Compare IRA options with help from Citizens Bank

If after comparing IRAs you decide you’d like to add both to your retirement portfolio, you may open both as long as the combined annual contributions do not exceed the maximum limit. (Example: $4,000 Roth + $1,500 Traditional = $5,500 Total.) You may also want to consult with a tax advisor to learn how IRA contributions and distributions impact your taxes. For more information, and to learn about our IRA Savings Plan and IRA CDs, visit a Citizens Bank branch or call 1-800-948-7200

1 If you participate in an employer-sponsored retirement plan, tax deferment of contributions to a Traditional IRA depends on your modified adjusted gross income (MAGI) and your tax-filing status. Refer to the chart below.

2 Listed below are MAGI limits that help to determine your eligibility to contribute to a Roth IRA. There are no restrictions for participation in employer sponsored plans.

 

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