IRA comparison table

You (or your spouse if filing a joint return) can contribute if you have earned income (a salaried job, investments or other sources).

Prior to January 1, 2020, you couldn’t contribute if you were age 70½ or older.

You (or your spouse if filing a joint return) can contribute if you have earned income and your income level is under certain limits.

For 2025:

Single filer, with modified adjusted gross income (MAGI) of:

• Less than $150,000 — full contribution

• $150,001–$164,999 — partial contribution

• $165,000 or more — not eligible

Joint filers, with MAGI of:

• Less than $236,000 — full contribution

• $236,001–$245,999 — partial contribution

• $246,000 or more — not eligible

Married, filing separately, with MAGI of:

• $0–$9,999 — partial contribution

• $10,000 or more — not eligible

The total contribution you can make to all of your IRAs for 2025 is $7,000 or 100% of your compensation, whichever is less.

If you’re age 50 or older, you can make an additional contribution of $1,000, for a total of $8,000.

Same as traditional IRA, subject to phase-out range depending on MAGI as explained in Eligibility.

For 2025:

Single filer, covered by a retirement plan at work, with MAGI of:

• $79,000 or less — fully deductible

• $79,001–$88,999 — partially deductible

• $89,000 or more — nondeductible

Single filer, not covered by a plan at work:

• Fully deductible

Joint filer, covered by a plan at work, with MAGI of:

• $126,000 or less — fully deductible

• $126,001–$145,999 — partially deductible

• $146,000 or more — nondeductible

Joint filer, only a spouse is covered by a plan at work, with MAGI of:

• $236,000 or less — fully deductible

• $236,001–$245,999 — partially deductible

• $246,000 or more — nondeductible

Married, filing separately, with MAGI of:

• $0–$9,999 — partial contribution

• $10,000 or more — not eligible

Roth contributions are not tax-deductible.

You can claim a nonrefundable tax credit for contributions if you are eligible.

The maximum credit allowed is 50% of the annual contribution amount up to $2,000, so long as your household income doesn’t exceed certain limits.

Joint filers with a MAGI of $79,000 or less in 2025 and single filers with a MAGI of $39,500 or less in 2025 qualify for the credit.

Same as traditional IRA..

Taxes are deferred until distributions are made; taxable distributions are treated as ordinary income.

 Withdrawals of nondeductible contributions are not taxed.

Contributions are made with after-tax money; therefore, withdrawals from the contribution amount (basis amount) are tax-free.

Earnings grow tax-deferred until distributions begin. Distributions are taxed as ordinary income.

Qualified distributions are tax-free.

Nonqualified distributions: earnings are taxed as ordinary income and may be subject to a penalty.

Conversions: earnings are tax-free after the conversion amount satisfies the 5-year investment period.

Conversion to a Roth IRA^**: allowed, regardless of MAGI or tax-filing status. The taxable portion of the converted amount will be treated as taxable income.

Recharacterizations: Investors can’t recharacterize (undo) Roth conversions that occurred on or after January 1, 2018.

To employer-sponsored plans: pretax contributions can be rolled over to a 401(k) or to another qualified plan, as well as to 403(b) and 457(b) plans. However, the receiving plan must accept IRA rollovers.

From employer-sponsored plans: eligible pretax and after-tax distributions from qualified plans, as well as from 403(b) and 457(b) plans, can be rolled over.

From/to another Roth IRA: allowed.

From employer-sponsored plans: eligible Roth contributions and earnings in 401(k) and 403(b) plans can be rolled over. In addition, non-Roth balances can be rolled over. (See Conversions for more information.)

Distributions from contributions and earnings can be taken after age 59½ without federal tax penalty.

Mandatory withdrawals must begin no later than April 1 of the year following the year you reach age 73.

Distributions before age 59½ are subject to a 10% tax penalty unless you qualify for one of the following exceptions under section 72(t) of the Internal Revenue Code:

• You’re disabled
  
  
• You’re taking substantially equal periodic payments
  
  
• The distribution is for certain medical bills
  
  
• The distribution is used for health insurance premiums during unemployment lasting at least 12 weeks
  
  
• The distribution is for post-secondary education expenses
  
  
• The distribution is used to purchase a first home (up to $10,000 lifetime maximum)
  
  
• You’re terminally ill
  
  
• The distribution is due to a federally declared disaster (up to $22,000)
  
  
• The distribution is for birth or adoption expenses (up to $5,000)
  
  
• The distribution is for unforeseeable or immediate financial needs related to necessary personal or family emergency expenses (up to the lesser of $1,000 or the excess of your account balance over $1,000)
   

• The distribution is due to domestic abuse (up to the lesser of $10,000 as adjusted for inflation or 50% of the account balance)
   

Distributions to your beneficiaries are also exempt from the 10% penalty.

Distributions from contributions can be made any time without taxes or federal tax penalty.

Distributions from earnings are tax-free if your initial contribution to the account was made at least 5years ago and you meet one of the following conditions:

• You’re age 59½

• You’re disabled

• You’re purchasing a first home (up to $10,000 lifetime maximum)

Payments made to your beneficiaries after the 5-year period are also tax- and penalty-free. Payments made before the end of the 5-year period are penalty-free.

Distributions from earnings are not subject to the 10% penalty as long as you qualify for an exception — same as exceptions for traditional IRAs.

Distributions from a conversion amount must satisfy a 5-year investment period to avoid the 10% penalty. This pertains only to the conversion amount that was treated as income for tax purposes.

You must begin taking RMDs no later than April 1 of the year following the year you turn 73.^‡‡

All of your IRA balances are aggregated for the purposes of calculating RMDs. Withdrawals may be taken from one or more IRAs.

No RMDs apply during your lifetime.