Indiana United Methodist Loan Fund
Traditional IRA vs. Roth IRA *Note:
Distribution of principal contributions may be made at any time from
Roth IRAs without penalty.
Traditional
Roth
Maximum Contribution
$4,000 per Person
per Year
$4,000 per Person
per Year
Income Limitations
None
Singles -
$110,000
Married - $160,000
Federal Tax Deductibility
Sometimes
None
Federal Taxation at Distribution
As Regular Income
None if After Age
59½ and Funds in IRA More than Five Years*
Federal Taxation on Earnings
Deferred Until
Distribution
None if After Age
59½ and Funds in IRA More than Five Years
Age 70½ 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: 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.
- Updated 09/27/2007. Questions? Comments? Contact the webmaster
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