|Traditional IRA||Roth IRA|
|Maximum yearly contribution (2019)||Lesser of $6,000 or 100% of earned income ($6,500 if age 50 or older)||Lesser of $6,000 or 100% of earned income ($6,500 if age 50 or older)|
|Income limitation for contributions||No||Yes|
|Tax-deductible contributions||Yes. Fully deductible if neither you nor your spouse is covered by a retirement plan. Otherwise, your deduction depends on your income and filing status.||No. Contributions to a Roth IRA are never tax deductible.|
|Age restriction on contributions||Yes. You cannot make annual contributions beginning with the year you reach age 70½.||No|
|Tax-deferred growth||Yes||Yes; tax free if you meet the requirements for a qualified distribution.|
|Required minimum distributions during lifetime||Yes. Distributions must begin by April 1 following the year you reach age 70½.||No. Distributions are not required during your lifetime.|
|Federal income tax on distributions||Yes, to the extent that a distribution represents deductible contributions and investment earnings.||No, for qualified distributions. For non-qualified distributions, only the earnings portion is taxable.|
|10% penalty on early distributions||Yes, the penalty applies to taxable distributions if you are under age 59½ and do not qualify for an exception.||No, for qualified distributions. For non-qualified distributions, the penalty may apply to the earnings portion. (Special rules apply to amounts converted from a traditional IRA to a Roth IRA.)|
|Includable in taxable estate of IRA owner at death||Yes||Yes|
|Beneficiaries pay income tax on distributions after IRA owner’s death||Yes, to the extent that a distribution represents deductible contributions and investment earnings.||Generally no, as long as the account has been in existence for at least five years.|
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