Roth IRA - Traditional IRA

What is a Roth Individual Retirement Account (IRA)?

A Roth IRA is designed to help you accumulate money for the future, especially for retirement. It can save you from relying on Social Security, or an employer's retirement plan, as your only source of retirement income.

Similar to a Traditional IRA, the money you invest in a Roth IRA accumulates interest tax deferred. However, unlike a Traditional IRA, payments into a Roth IRA are not deductible for federal income tax purposes, and distributions may not be subject to federal income tax.

What is a Traditional Individual Retirement Account (IRA)?

A Traditional IRA is designed to help you accumulate money for the future, especially for retirement. Usually, the money you invest in a Traditional IRA is deductible for federal income tax purposes, and interest earnings accumulated tax-deferred.

Who is eligible for a Traditional IRA?

If you have earned income and it does not exceed certain limits, you, and perhaps your spouse, are eligible for a Traditional IRA.

Can I have a Traditional IRA and a ROTH IRA?

Yes you can. However, you cannot contribute more than the allowable amount into either type of IRA or a combination of the two.