Individual Retirement Accounts (IRAs)

You can't stop time. But you can use it to your advantage.

It's never too early to start thinking about retirement — you'll need money to allow you to live comfortably. By starting to save early, and by choosing an IRA that offers tax advantages, you'll be able to build up your bankroll and take on any lifestyle you choose.

Traditional IRA

No delayed gratification here. There's a good chance you'll enjoy present-day tax breaks as you save money for tomorrow.

Investments are in rock-solid IRA Certificate Accounts
Enjoy potential annual tax deductions
Earnings grow tax-deferred

Roth IRAs

Sometimes, it pays to play the long game. The big tax breaks come down the line, when you go to withdraw your funds.

Guaranteed returns from IRA Certificate Accounts
No taxes on withdrawals
Use money for other special circumstances

Compare

Account	Who can contribute?	How much can I contribute?	Who can make deductible contributions?	What are the tax advantages?	When can I withdraw without restrictions?
Traditional IRA	Anyone 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	Up to $6,500 for 2023 and $7,000 for 2024 For owners age 50 and older, you have higher limits: $7,000 for 2023 and $8,000 for 2024 Restrictions: Cannot exceed compensation Reduces contributions that can be made to Roth IRAs	Fully-deductible contributions: Single individuals not active in employer retirement plans Single individuals active in employer retirement plans with MAGI¹ of $83,000 or less for 2023 and $87,000 or less for 2024 Married couples with neither spouse active in an employer retirement plan Married individuals active in employer retirement plans with joint tax returns showing MAGI of $136,000 or less for 2023 and $143,000 or less for 2024 Married individuals not active in employer retirement plans with spouses who are, as long as MAGI² is $228,000 or less for 2023 and $240,000 or less for 2024	Earnings grow tax-deferred until withdrawn Contributions may be tax-deductible 2023 and 2024: Required to start withdrawals at age 73	Withdraw penalty-free for any of the following reasons: Qualified higher-education expenses First-time home purchase² 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
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 $153,000 (single filers for 2023) Up to $161,000 (single filers for 2024) Up to $228,000 (joint filers in 2023) Up to $240,000 (joint filers in 2024) Reduced contributions allowed for higher incomes. Persons who are married and filing separately with incomes: Up to $10,000	Up to $6,500 for 2023 and $7,000 for 2024 For owners age 50 and older, you have higher limits: $7,000 for 2023 and $8,000 for 2024 Restrictions: Cannot exceed compensation Reduces contributions that can be made to traditional IRAs	No one can deduct contributions	Earnings are tax-free if account is open for five tax years and withdrawn for a qualified reason (age 59½, disability, death, or a first-time home purchase) Not required to start withdrawals at any age	Regular contributions can be withdrawn tax-free and penalty-free at any time After the account has been open five tax years, earnings can be withdrawn tax-free and penalty-free for any of these reasons: age 59½, disability, death, or a first-time home

Account

Who can contribute?

How much can I contribute?

Who can make deductible contributions?

What are the tax advantages?

When can I withdraw without restrictions?

Traditional IRA

Anyone 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

Up to $6,500 for 2023 and $7,000 for 2024

For owners age 50 and older, you have higher limits:

$7,000 for 2023 and $8,000 for 2024

Restrictions:

Cannot exceed compensation
Reduces contributions that can be made to Roth IRAs

Fully-deductible contributions:

Single individuals not active in employer retirement plans
Single individuals active in employer retirement plans with MAGI¹ of $83,000 or less for 2023 and $87,000 or less for 2024
Married couples with neither spouse active in an employer retirement plan
Married individuals active in employer retirement plans with joint tax returns showing MAGI of $136,000 or less for 2023 and $143,000 or less for 2024
Married individuals not active in employer retirement plans with spouses who are, as long as MAGI² is $228,000 or less for 2023 and $240,000 or less for 2024

Earnings grow tax-deferred until withdrawn
Contributions may be tax-deductible
2023 and 2024: Required to start withdrawals at age 73

Withdraw penalty-free for any of the following reasons:

Qualified higher-education expenses
First-time home purchase²
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

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 $153,000 (single filers for 2023)
Up to $161,000 (single filers for 2024)
Up to $228,000 (joint filers in 2023)
Up to $240,000 (joint filers in 2024)

Reduced contributions allowed for higher incomes.

Persons who are married and filing separately with incomes:

Up to $10,000

Up to $6,500 for 2023 and $7,000 for 2024

For owners age 50 and older, you have higher limits:

$7,000 for 2023 and $8,000 for 2024

Restrictions:

Cannot exceed compensation
Reduces contributions that can be made to traditional IRAs

No one can deduct contributions

Earnings are tax-free if account is open for five tax years and withdrawn for a qualified reason (age 59½, disability, death, or a first-time home purchase)
Not required to start withdrawals at any age

Regular contributions can be withdrawn tax-free and penalty-free at any time
After the account has been open five tax years, earnings can be withdrawn tax-free and penalty-free for any of these reasons: age 59½, disability, death, or a first-time home