Traditional and Roth IRAs
An IRA can help you save more for retirement. Explore the differences between a Traditional IRA and a Roth IRA and decide which one is right for you.
Choose the way you save. There are two types of individual retirement arrangements (IRAs): Traditional and Roth. Though the eligibility requirements differ, often the decision of whether to contribute to a Traditional IRA or a Roth IRA depends on your income. Both offer flexibility, accessibility, and valuable tax benefits.
Roth IRA You may qualify for a tax credit of up to $1,000 when you make a contribution. You can withdraw Roth IRA contributions at any time, tax and penalty free. Any earnings are tax-deferred (you do not pay tax on the earnings until you withdraw them). If you satisfy the qualified distribution requirements, you can withdraw the earnings tax free. You are never required to take money out of your Roth IRA, no matter what your age.
Traditional IRA You may qualify for a tax credit of up to $1,000 when you make a contribution. Any earnings are tax-deferred (you do not pay tax on the earnings until you withdraw them). If your contributions are tax-deductible, you do not pay taxes on them until you withdraw the money. Any after-tax amounts (nondeductible contributions) can be withdrawn tax and penalty free.
26240-EB (11/2025) ©2025 Ascensus, LLC