Tax Benefits

Tax-deferred growth. You get a tax break up front and pay taxes later. Contributions are tax-free and earnings grow tax-deferred.

Early Withdrawal Penalty

Yes. You may be subject to a 10% for withdrawals before age 59½ unless an exception applies.

Minimum Required Distributions (MRD)

MRD Applies. Minimum required distributions after age 70½.

Age Limits

Mandatory withdrawals starting at age 70½.

Income Limits

No income limits.

Contribution Limit (tax year 2019)

$6,000.Or $7,000 if you’re over 50, subject to income limitations.

Tax Benefits

Tax-deferred growth. Contributions are taxed as income and earnings grow federal tax-free if owned over 5 years.

Early Withdrawal Penalty

No penalty for withdrawal contributions, but you may be subject to a 10% penalty for withdrawing earnings before age 59½.

Minimum Required Distributions (MRD)

Not subject to MRD.

Age Limits

No age limits. No age limits for contributions or withdrawals.

Income Limits

Some income limits.  Depending on your income and tax filing status.

Contribution Limit (tax year 2019)

$6,000.Or $7,000 if you’re over 50, subject to income limitations.