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IRA Comparison Chart

Who Can Contribute?
Roth IRA	Anyone who has income from compensation and whose MAGI is less than the defined limits set by Congress. If your MAGI is too high to contribute the annual contribution limit, you may be able to make a smaller contribution.
Traditional IRA	Anyone under age 70½ 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 are not allowed once the beneficiary of the Coverdell ESA reaches age 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	$5,000 for 2009 and 2010 For owners age 50 and older, your limits increase: $6,000 for 2009 and 2010 Contributions cannot exceed compensation Reduces contributions that can be made to traditional IRAs
Traditional IRA	$5,000 for 2009 and 2010 For owners age 50 and older, your limits increase: $6,000 for 2009 and 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 below defined limits Married couples with neither spouse active in an employer retirement plan (regardless of income) Married individuals active in employer retirement plans filing joint tax returns with MAGI below defined limits Married individuals not active in employer retirement plansfiling joint tax returns with spouses who are, as long as MAGI is below defined limits.
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 59½, disability, death, or a first-time home purchase**) Does not require minimum distributions beginning at age 70½
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 and equipment required for enrollment or attendance at nearly any post-secondary educational institution (public, non-profit or proprietary). Certain room and board expenses may also qualify. Qualified expenses also include these same expenses for elementary and secondar education, and the purchase of computer technology or equipment that is used by the beneficiary or the beneficiary's family while the beneficiary is in school. 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, but the same expenses cannot be used for more than one of these tax benefits.

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 59½, 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 59½ 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. Contribution and deductibility limits change frequently. Consult your tax professional regarding your individual circumstances.

** Subject to $10,000 lifetime limit

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