What are the basic differences between a Traditional IRA and a Roth IRA?

A. Traditional IRA contributions may be deductible and your assets grow on a tax-deferred basis. This means that you postpone paying taxes until you withdraw money from your IRA.

Roth IRA contributions are not deductible and assets grow on a tax-free basis. This means that, if your account is open for 5 years and you are at least 59½, you will not pay taxes when you withdraw money. Q.

Who is eligible to contribute to a Roth IRA? A. Anyone who has earned income that does not surpass the IRS Modified Adjusted Gross Income (MAGI) limit.

Q. How much can I contribute to my Roth IRA each year? A.

It depends on your tax year, tax filing status, MAGI and age. See the tables below. More.

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