American Chartered

Traditional IRA vs. Roth IRA

The main difference between Traditional and Roth IRAs occurs when the IRA contribution is taxed:

With a Traditional IRA, you pay no tax on an IRA contribution; however, you are taxed when those earnings are withdrawn at retirement (typically at a lower rate).*
With a Roth IRA, there is NO tax deduction for contributions; however, the withdrawal of those earnings at retirement is tax-free.*

For both types of IRAs, earnings (e.g. interest, dividends, capital gains) or contributions are tax deferred.*

	Traditional IRA	Roth IRA
Eligibility:	-Earned income -Under age 70 ½	-Earned income -No age limit -Income limitations
Contribution Limit:	100% of income or annual limit	100% of income or annual limit
Deductibility:	Yes, depending on workplace pension and AGI*	No*
Tax Deferred Earnings:	Yes*	Yes*
Tax Free Distributions:	No*	Yes, if qualified*
Required age 70 ½ Distributions:	Yes	No

View our current rates!

Questions? Contact us or visit us at any of our convenient locations!

*American Chartered Bank is not a tax advisor. Please speak with your tax consultant regarding IRA deductions, tax deferred earnings, and tax free distributions.


	Bank/Federal Reserve Holiday \| Report Lost or Stolen Cards \| Contact Us \| Deposit Rates \| Order Checks - Business \| Order Checks - Personal \| Order Foreign Currency \| Career Opportunities \| Terms & Conditions \| Privacy Policy This site may be utilized for authorized purposes only. Unauthorized access or use is not permitted and constitutes a crime punishable by law. Activity on this site is monitored for security purposes.