Traditional IRA Or Roth?
Traditional IRA Or Roth?
Understand The Difference & Choose Your Fit
Understand The Difference & Choose Your Fit
Both IRAs help you save for retirement, but they work differently. Here’s a quick look at how each one is designed, so you can make the choice that’s right for you.*
Both IRAs help you save for retirement, but they work differently. Here’s a quick look at how each one is designed, so you can make the choice that’s right for you.*
Traditional IRA
Traditional IRA
Contributions
Contributions may be tax-deductible now, lowering your taxable income for the year.
Withdrawals
Withdrawals in retirement are taxed as ordinary income.
Age Limits
You can contribute as long as you have earned income, up to annual IRS limits. Required minimum distributions (RMDs) begin at age 73.
Contributions
Contributions may be tax-deductible now, lowering your taxable income for the year.
Withdrawals
Withdrawals in retirement are taxed as ordinary income.
Age Limits
You can contribute as long as you have earned income, up to annual IRS limits. Required minimum distributions (RMDs) begin at age 73.
Roth IRA
Traditional IRA
Contributions
Contributions are made with after-tax dollars, so they don’t reduce your taxable income today.
Withdrawals
Qualified withdrawals in retirement (after age 59½ and if the account is at least 5 years old) are tax-free.
Age Limits
You can contribute as long as you have earned income, up to annual IRS limits. No required minimum distributions (RMDs) during your lifetime.
Contributions
Contributions may be tax-deductible now, lowering your taxable income for the year.
Withdrawals
Withdrawals in retirement are taxed as ordinary income.
Age Limits
You can contribute as long as you have earned income, up to annual IRS limits. Required minimum distributions (RMDs) begin at age 73.
*First Bank Texas and its subsidiaries do not provide tax, legal or accounting advice. The information here is for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal or accounting advice. You should consult your own tax, legal and accounting advisors before engaging in any transaction.
*First Bank Texas and its subsidiaries do not provide tax, legal or accounting advice. The information here is for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal or accounting advice. You should consult your own tax, legal and accounting advisors before engaging in any transaction.
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