Roth IRA Vs. Traditional IRA

During retirement, it’s crucial you have enough income to cover expenses. You can help make sure you are financially prepared by adding a Mountain America IRA to your retirement plan.

Schedule A Consultation

Roth IRA Vs. Traditional IRA

During retirement, it’s crucial you have enough income to cover expenses. You can help make sure you are financially prepared by adding a Mountain America IRA to your retirement plan.

Prepare Financially for Retirement

During retirement, it’s crucial you have enough income to cover expenses. You can help make sure you are financially prepared by adding a Mountain America Individual Retirement Account (IRA) to your retirement plan. An IRA at Mountain America gives you an additional account to save for, and better enjoy, your retirement.
 

What is an IRA?

An IRA is a form of retirement plan that offers certain tax advantages. The two most common accounts are Traditional IRAs and Roth IRAs. Each offers different tax advantages and benefits, so it’s important to compare them. See which one is right for you.
 

Benefits of Mountain America’s IRAs

  • Excellent long-term savings vehicle
  • Tax advantages1
  • Flexible options
  • Easier to manage than other retirement accounts
  • Both Traditional and Roth IRAs available
  • Insured up to $250,000 by NCUA
Don't wait. Meet with one of our wealth advisors today to determine if a Traditional or Roth IRA is right for your, and start yourself on the path to a comfortable, relaxing retirement. You can schedule an appointment with our wealth management team by calling 1-800-540-7670, or schedule online by clicking the link below.

Schedule Consultation

What's the difference?

In many ways, Traditional and Roth IRAs are very similar. They both allow you to grow your money while receiving tax benefits. However, there are some distinct differences, especially when it comes to the tax benefits. By using the table below, you can easily compare the two main IRA types and choose the one that's right for you. You can also use this helpful IRA calculator to help determine whether a Roth or Traditional IRA is right for you.

 
Roth VS. Traditional
 

Roth IRA

Traditional IRA

Tax advantages
Contributions Not tax-deductible. Tax-deductible, subject to certain limitations.
Earnings Tax-free, subject to certain limitations. Taxes are deferred until you begin withdrawing funds.
Withdrawals Tax-free withdrawal of original contribution; potentially tax-free withdrawal of earnings if part of a qualified withdrawal. Taxable.
Contributions
Maximum Contributions 2017: Up to $5,500 for those under 50; $6,500 for those 50 and up. 2017: Up to $5,500 for those under 50; $6,500 for those 50 and up.
Eligibility No age restrictions.

If you are single, you may have a modified Adjusted Gross Income (AGI) of up to $133,000 in 2017 to make a full contribution.

If you are married filing jointly, you may have a modified AGI of up to $196,000 in 2017 to make a full contribution.
Anyone with earned income may contribute up to age 70-1/2.
Withdrawals
Tax/penalty consequences Contributions can be withdrawn anytime without taxes or penalties.

Earnings can be withdrawn, without taxes or penalties, if you are 59-1/2 and your account has been open five years or more.
All earnings and deductible contributions are taxable upon withdrawal.

Penalties will be assessed if withdrawals are taken before age 59-1/2, or if withdrawals are not taken by age 70-1/2.
Distribution requirements None. Required minimum distributions upon reaching age 70-1/2.
Exceptions to penalties Some exceptions are made if funds are used for a first-time home purchase, education or certain medical expenses. Some exceptions are made if funds are used for a first-time home purchase, education or certain medical expenses.

Savings Tips

5 Ways to Alleviate Money Concerns

Concerns about money seem to be on everyone’s mind—all the time. A recent survey by... Read More »

5 Finance Tips for Teens

You have dreams. Maybe this week it’s a new laptop and a phone to replace... Read More »

Make 2017 the Year of Saving Money

For most of us, January is the time when we tighten our belts, cut back... Read More »

5 Times to Talk with Your Financial Advisor

It’s easy to delay an appointment with your financial advisor. You’re too busy. You’ll find... Read More »

12 Shopping Tips Your Wallet Will Thank You For

It’s easy to see how so many people end up in debt come January. Simply... Read More »

Make sure you have sufficient income during retirement.
1 Consult your tax advisor.

Connect with us

Live Help

Chat With A Member Of Our Support Team

First Name
*
Last Name
*
Email
*
Topic
*

*

CHAT SUPPORT IS AVAILABLE

Monday - Friday: 9:00 AM - 6:00 PM MDT
Saturday - Sunday: Closed

Check out our FAQs

Which type of account would you like to register?

(including re-registrations)