One of the key benefits to contributing to a Traditional IRA is the potential for a tax deduction up front. This option may make sense for you if you anticipate a higher tax rate while saving, anticipate a lower tax rate during retirement, are interested in taking the Required Minimum Distribution (RMD) amounts during retirement, or you are not concerned about tax savings for beneficiaries.

• Tax considerations: Contributions may be tax deductible; earnings are tax-deferred
• Eligibility: To contribute to a Traditional IRA, the owner must be under age 70½ by the end of the year, earn income (equal to or exceeding the amount of the contribution). For income limits, see IRS Publication 590 at irs.gov.
• Maximum yearly contribution: Up to $5,500 for 2018 and up to $6,000 for 2019 (plus $1,000 if you are age 50 or older)
• Contribution deadlines: You can contribute to your IRA until the due date for filing your federal income tax return for the year (for most individuals this is typically April 15th)
• Required Minimum Distributions (withdrawals): Must start by April 1st of the year after participant turns age 70 ½

Unlike the Traditional IRA, contributions to a Roth IRA are never tax-deductible. But the money you contribute to your Roth IRA can be withdrawn tax-free at any time. And if you qualify, you can withdraw the earnings tax-free too. A Roth IRA may be more fitting if you anticipate a lower tax rate while saving, anticipate a higher tax rate during retirement, want to avoid RMDs, are concerned about tax savings for beneficiaries, or you are not eligible to contribute to a Traditional IRA because of the age limit.

• Tax considerations: Contributions are taxable and can be withdrawn tax and penalty-free at any time; earnings are tax-deferred; certain earnings withdrawals may be tax-free
• Eligibility: No age limit to contribute; however, the owner must be earning income . See income limits below.
• Income limits: For 2018, contributions begin phasing out at these Modified Adjusted Gross Incomes (MAGIs): $120,000 for single and head of household or $189,000 if married, filing jointly. For 2019, contributions begin phasing out at these Modified Adjusted Gross Incomes (MAGIs): $122,000 for single and head of household or $193,000 if married, filing jointly.
• Maximum yearly contribution: Up to $5,500 for 2018 and up to $6,000 for 2019 (plus $1,000 if you are age 50 or older)
• Contribution deadlines: You can contribute to your IRA until the due date for filing your federal income tax return for the year (for most individuals this is typically April 15th)
• Minimum Required Distributions (withdrawals): No withdrawal requirements

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