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IRA Comparison Chart

Who Can Contribute?
Roth IRA	Anyone who has income from compensation (or who is filing jointly with a spouse who earns compensation) with the following MAGI*: Up to $95,000 (single filers) Up to $150,000 (joint filers) Reduced contributions allowed for higher incomes: Up to $110,000 (single filers) Up to $160,000 (joint filers)
Traditional IRA	Anyone under age 70-1/2 who has income from compensation (or who is filing jointly with a spouse who earns compensation) Anyone who has received a distribution from a qualified retirement plan and decides to roll over the proceeds of the plan into an IRA.
Coverdell Education Savings Account	Anyone who has MAGI*: Up to $95,000 (single filers) Up to $190,000 (joint filers) Some people with higher MAGI* may be able to make smaller contributions Contributions not allowed: Once the beneficiary of the Coverdell ESA reaches age of 18 (except for special needs beneficiaries)

Who Can Contribute?

How Much Can I Contribute?

Who Can Make Deductible Contributions?

What Are The Tax Advantages?

When Can I Withdraw Without Restrictions?

How Much Can I Contribute?
Roth IRA	$4,000 for 2007 $5,000 for 2008 to 2010 For owners age 50 and older, your limits increase: $5,000 for 2007 $6,000 for 2008 to 2010 Contributions cannot exceed compensation Reduces contributions that can be made to traditional IRAs
Traditional IRA	$4,000 for 2007 $5,000 for 2008 to 2010 For owners age 50 and older, your limits increase: $5,000 for 2007 $6,000 for 2008 to 2010 Contributions cannot exceed compensation Reduces contributions that can be made to Roth IRAs
Coverdell Education Savings Account	$2,000 per child each year Limit applies to all Coverdell ESAs for the same child

Who Can Contribute?

How Much Can I Contribute?

Who Can Make Deductible Contributions?

What Are The Tax Advantages?

When Can I Withdraw Without Restrictions?

Who Can Make Deductible Contributions?
Roth IRA	No one can deduct contributions
Traditional IRA	Fully deductible contributions: Single individuals not active in employer retirement plans (regardless of income) Single individuals active in employer retirement plans with MAGI* of less than $50,000 (through 2010) Married couples with neither spouse active in an employer retirement plan (regardless of income) Married individuals active in employer retirement plans with joint tax returns showing MAGI* of less than $80,000 (through 2010) Married individuals not active in employer retirement plans with spouses who are, as long as MAGI* is $150,000 or less
Coverdell Education Savings Account	No one can deduct contributions

Who Can Contribute?

How Much Can I Contribute?

Who Can Make Deductible Contributions?

What Are The Tax Advantages?

When Can I Withdraw Without Restrictions?

What Are The Tax Advantages?
Roth IRA	Earnings are tax-deferred and withdrawals are tax-free if the account is open for five tax years and withdrawals are for a qualified reason (age 59-1/2, disability, death, or a first-time home purchase**) Does not require minimum distributions beginning at age 70-1/2
Traditional IRA	Earnings grow tax-deferred until withdrawn Contributions may be tax-deductible
Coverdell Education Savings Account	Withdrawals for certain qualified education expenses are tax-free Qualified education expenses include tuition, fees, books, computer equipment and technology required for elementary, secondary and post-secondary education A beneficiary may receive tax-free distributions from a Coverdell ESA in the same year he or she claims the Lifetime Learning or HOPE Scholarship tax credits.

Who Can Contribute?

How Much Can I Contribute?

Who Can Make Deductible Contributions?

What Are The Tax Advantages?

When Can I Withdraw Without Restrictions?

When Can I Withdraw Without Restrictions?
Roth IRA	Regular contributions can be withdrawn tax- and penalty-free at any time After the account has been open five tax years, earnings can be withdrawn tax- and penalty-free for any of these reasons: age 59-1/2, disability, death, or a first-time home purchase**
Traditional IRA	Withdraw penalty-free for any of the following reasons: Qualified higher-education expenses First-time home purchase** Age 59-1/2 Disability Qualifying medical expenses exceeding 7.5% of adjusted gross income Payment to beneficiaries upon the owner's death Payment of health insurance premiums while unemployed for 12 weeks or longer
Coverdell Education Savings Account	Withdrawals are tax- and penalty-free only for qualified higher-education expenses (earnings are subject to tax and penalty for most other withdrawals) Funds can be transferred from one child's account to an account for another child in the family

* MAGI - Modified Adjusted Gross Income from the federal tax form ** Subject to $10,000 lifetime limit

Not intended as tax advice. Please consult a tax professional.