IRA CD Account Comparison
Feature | Traditional IRA1 | Roth IRA1 |
---|---|---|
Tax-deductible2 contributions | Yes | No |
Tax-deferred earnings | Yes | Yes |
Maximum annual contribution |
|
|
Tax-free withdrawal of earnings | No |
Yes If account is held for five years after the first contribution is made, and any of the following reasons apply:
|
Penalty-free distribution |
Qualified exceptions to the 10% penalty:
|
Qualified exceptions to the 10% penalty:
|
Age deadline for contributions | No age limit | No age limit |
- Fees may reduce account earnings. Early withdrawal may be subject to taxation and penalties by the IRS and interest penalties may be charged by the Bank. $15 account closing fee and $12 annual administration fee apply.
- Consult with your tax advisor regarding the deductibility of your IRA Account contributions.
- If both you and your spouse are first-time homebuyers, each of you can receive distributions up to $10,000 for a first home without having to pay the 10% penalty.