2010

Traditional IRA vs. Roth IRA

	Traditional	Roth
Maximum Contribution	$5,000 per Person per Year under 50 ($6,000 - 50 & over)	$5,000 per Person per Year under 50 ($6,000 - 50 & over)
Income Limitations	None	Singles - $105,000 -120,000 Married - $167,000 - 177,000
Federal Tax Deductibility	Sometimes	None
Federal Taxation at Distribution	As Regular Income	None if After Age 591/2  and Funds in IRA More than Five Years*
Federal Taxation on Earnings	Deferred Until Distribution	None if After Age 591/2 and Funds in IRA More than Five Years
Age 701/2  Rules	Mandatory Distributions. No Further Contributions Allowed	None
Contribution Deadline	April 15 of Year Following Contribution Year	April 15 of Year Following Contribution Year
Transfers	Directly From Any Qualified Retirement Plan or IRA - No Taxes or IRS Penalties Due	Directly from any Roth Qualified Retirement Plan or Roth IRA.
Early Distributions	10% Federal Tax Penalty for Unqualified Distributions	Distributions of Principal OK; 10% Federal Tax Penalty for Unqualified Distributions of Interest

*Note: Distribution of principal contributions may be made at any time from Roth IRAs without penalty.
*Note: Traditional, SEP and Simple IRAs can be converted to Roth IRAs if AGI is under $100,000. Taxes due on pre-tax dollars in year of conversion.