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| Is there an age limit? | No. You can contribute at any age if you (or your spouse if filing jointly) have taxable compensation and your modified AGI is below certain amounts. | No. You can contribute at any age if you (or your spouse if filing jointly) have taxable compensation. Note: Prior to January 1, 2020, you were unable to contribute if you were age 70½ or older. |
| Are contributions tax deductible? | Roth IRA contributions are not tax deductible. | You can deduct your IRA contributions if you qualify. |
| How much can I contribute? | For 2020, the maximum is $6,000, or $7,000 if you’re age 50 or older by the end of the year. | For 2020, the maximum is $6,000, or $7,000 if you’re age 50 or older by the end of the year. |
| Is there a deadline for contributions? | The IRS allows you until tax day, April 15th, to make prior year contributions. | The IRS allows you until tax day, April 15th, to make prior year contributions. |
| Do I have to take RMDs? | No. | You must start taking distributions by April 1 following the year in which you turn age 72 (70 1/2 if you reach the age of 70 ½ before January 1, 2020) and by December 31 of following years. |
| Are my withdrawals taxable? | Withdrawals and distributions are not taxable as long as the five-year requirement has been met. | Yes, they are taxed at your tax bracket at the time of withdrawal. |
| Are there income limits to be able to contribute? | Yes. It depends on your modified adjusted gross income and how you file your taxes. Click here for more information. | No. |
| When can I withdraw money from my account? | Withdrawals made from principal dollars are tax free, but the growth is taxed and penalized at 10% if withdrawn before age 59 1/2. Click here for some exceptions. | The IRS imposes a 10% penalty in addition to the tax for withdrawals made before age 59 1/2. Click here for some exceptions. |
| Buy Now | Buy Now |
