Traditional IRA vs. Roth IRA
As a result of the Taxpayer Relief Act of 1997, while the traditional tax-deferred IRA has been enhanced, a new tax-free IRA has been created. These changes went into effect for 1998 tax year contributions.
KEY CHARACTERISTICS OF THE TWO IRA'S
|Under age 70 1/2 with compensation,
including a non-working spouse.
Subject to tax and possible penalties
Tax deductible, subject to AGI limits
|Any age with compensation, including
a non-working spouse, subject to income limits; Single: $110,000; Married:
Contribution Withdrawals and qualified distributions of earnings are tax-free.
Not Tax deductible.
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