Start simple, with your age and income. Then compare the IRA rules and tax benefits.
IRA eligibility
ROTH IRA
TRADITIONAL IRA
Is there an age limit?
ROTH IRAYou can contribute to a Roth IRA at any age.
TRADITIONAL IRAYou must be under age 70½ to contribute to a traditional IRA.
How does my income affect how much I can contribute?
ROTH IRAThe amount you can contribute to a Roth IRA:
- Can’t exceed the amount of income you earned that year.
- Can’t exceed the IRS-imposed limits (see below).
- Could be reduced—or even eliminated—based on your modified adjusted gross income (MAGI).
Get details on Roth IRA income limits
TRADITIONAL IRAThe amount you can contribute to a traditional IRA:
- Can’t exceed the amount of income you earned that year.
- Can’t exceed the IRS-imposed limits (see below).
There are no additional restrictions based on your income.
Can minors or nonworking spouses contribute to an IRA?
ROTH IRAMinors and nonworking spouses may be able to contribute, but check the special income rules first.
TRADITIONAL IRAMinors and nonworking spouses may be able to contribute, but check the special income rules first.
IRA contribution rules
ROTH IRA
TRADITIONAL IRA
What are the contribution limits?
ROTH IRAFor the 2015 and 2016 tax years:
- If you’re under age 50, you can contribute up to $5,500.
- If you’re age 50 or older, you can contribute up to $6,500.
Limits could be lower based on your income.
Get details on IRA contribution limits & deadlines
TRADITIONAL IRAFor the 2015 and 2016 tax years:
- If you’re under age 50, you can contribute up to $5,500.
- If you’re age 50 or older, you can contribute up to $6,500.
Limits could be lower based on your income.
Get details on IRA contribution limits & deadlines
Can I claim my contribution as a deduction on my tax return?
ROTH IRAYou can’t deduct your Roth IRA contribution.
TRADITIONAL IRAYou may be able to deduct some or all of your traditional IRA contributions. The deductible amount could be reduced or eliminated if you or your spouse is already covered by a retirement plan at work.
Get details on IRA deductions
What’s the deadline for making contributions in a given year?
ROTH IRAThe deadline is typicallyApril 15 of the following year.
TRADITIONAL IRAThe deadline is typicallyApril 15 of the following year.
How much money do I need to open a Vanguard IRA®?
ROTH IRAYou’ll need $1,000 for any Vanguard Target Retirement Fund or for Vanguard STAR® Fund.
Most other Vanguard funds require an initial investment of at least $3,000, though some have higher minimums.
TRADITIONAL IRAYou’ll need $1,000 for any Vanguard Target Retirement Fund or for Vanguard STAR Fund.
Most other Vanguard funds require an initial investment of at least $3,000, though some have higher minimums.
IRA withdrawal rules
ROTH IRA
TRADITIONAL IRA
Will I pay taxes on withdrawals?
ROTH IRAYou’ll never pay taxes on withdrawals of your Roth IRA contributions. And you won’t pay taxes on withdrawals of your earnings as long as you take them after you’ve reached age 59½ and you’ve met the 5-year-holding-period requirement.
Get details on IRA withdrawals
TRADITIONAL IRAYou’ll pay ordinary income tax on withdrawals of all traditional IRA earnings and on any contributions you originally deducted on your taxes.
Get details on IRA withdrawals
Is there a penalty for withdrawals taken before age 59½?
ROTH IRAThere are no penalties on withdrawals of Roth IRA contributions. But there’s a 10% federal penalty tax on withdrawals of earnings.
Exceptions to the penalty tax
TRADITIONAL IRAWith a traditional IRA, there’s a 10% federal penalty tax on withdrawals of both contributions and earnings.
Exceptions to the penalty tax
Will I have to take required minimum distributions (RMDs)?
ROTH IRARoth IRAs have no RMDs during your lifetime.
TRADITIONAL IRAYou must take your first RMD from your traditional IRA by April 1 of the year following the year you reach age 70½.
For each subsequent year, you’ll need to take your annual RMD byDecember 31.
Get details on RMDs
Open your IRA today
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