IRA comparison table

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

For 2023:

Single filer, with MAGI of:

• Less than $138,000 — full contribution

• $138,000-$152,999 — partial contribution

• $153,000 or more — not eligible

Joint filers, with MAGI of:

• Less than $218,000 — full contribution

• $218,000-$227,999 — partial contribution

• $228,000 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 2023 is $6,500 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 $7,500.

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

For 2023:

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

• $73,000 or less — fully deductible

• $73,001–$82,999 — partially deductible

• $83,000 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:

• $116,000 or less — fully deductible

• $116,001–$135,999 — partially deductible

• $136,000 or more — nondeductible

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

• $218,000 or less — fully deductible

• $218,001–$227,999 — partially deductible

• $228,000 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 $73,000 or less in 2023 and single filers with a MAGI of $36,500 or less in 2023 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 five-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 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)

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 five years 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 five-year period are also tax and penalty free. Payments made before the end of the five-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 five-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.