Rosenberg Financial Group, Inc.
A Registered Investment Advisor
2517 Moody Rd, Suite 100, Warner Robins, GA 31088
4875 Riverside Dr, Suite 201, Macon, GA 31201
Traditional IRAs vs. ROTH IRAs
Qualifications
Income
limitations
Can You Have a
401(K) at the
Same Time?
Annual
Contributions
Traditional IRA
Roth IRA
If you or your spouse earned
taxable income.
If you or your spouse earned
taxable income.
You are under age 70½.
No age restrictions.
Traditional nondeductible:
No income limit.
Single filers must
earn less than $117,000.
Traditional deductible:
Single: $61,000 - $71,000.
Joint: $98,000 - $118,000.
Joint-filers must earn
less than $184.000.
Yes, but you may not be able
to deduct your entire IRA
contribution from your taxes.
Yes
$5,500 total between accounts combined.
$6,500 if age 50+.
See Catch-up Contributions
Note: You can never contribute more than you have earned in a year.
Tax
Advantages
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Contributions are generally
tax deductible.
You only pay taxes when you
withdraw the money.
No tax on all future growth and
withdrawals.
This information is subject to change and is intended as a educational tool to
help familiarize you with these types of accounts.
Supporting information can be found on the Internal Revenue Services
website: www.irs.gov. Use the search tool to quickly locate information on
this topic.
Traditional IRAs vs. ROTH IRAs
Traditional IRA
Withdrawals
Required
Distributions
Catch-up
Contributions
Roth IRA
Taxed
Not Taxed
Withdrawals after age
59½ are taxed as regular
Income.
Withdrawals after age 59½ are tax
free as long as the account is at
least 5 years old.
Withdrawals before age 59½ are
subject to taxes plus a 10% early
withdrawal penalty fee.
Withdrawals before age 59½ are
subject to taxes and penalties if the
withdrawal dips into your earnings.
You are required to take annual
distributions after you turn 70½.
No withdrawal requirement.
Both traditional and Roth IRA’s allow “catch-up” contributions.
At age 50+, you can contribute an additional $1,000.00 annually.
The deadlines are the same for both options.
Deadlines
April 18, 2016, for the tax year 2015.
Securities Offered
through Royal Alliance
Associates, Inc.
Member FINRA and
SIPC
Advisory services
offered through
Rosenberg Financial
Group, Inc.,
A Registered
Investment Advisor not
affiliated with Royal
Alliance Associates,
Inc.
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Common Question:
What is Earned Income?: Earned income includes but is not limited to the
following items: Wages, salaries, tips, and other taxable employee pay,
union strike benefits, long-term disability benefits received prior to
minimum retirement age; net earnings from self-employment if: you own or
operate a business or a farm, or are a minister or member of a religious
order, you are a statutory employee and have income. Examples of income
that are Not Earned Income: Pay received for work while an inmate in a
penal institution, interest and dividends, retirement income, social security,
unemployment benefits, alimony and child support.
What is Adjusted gross income (AGI)? AGI is a modification of gross
income for tax purposes. AGI is gross income minus IRS approved
deductions such as, unreimbursed business expenses, medical expenses,
alimony retirement plan contributions and losses incurred from the sale or
exchange of property.
Learn more about these and other valuable topics at www.irs.gov.