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Compare Traditional and Roth IRAs

Feature Traditional IRA Roth IRA

Is available to married couples (even if one-income family) 

 yes

yes

Offers tax deferral 

 yes

 

Can be tax deductible

 yes

 

Offers tax-free income

 

yes

Has annual contribution limits 

 yes

 yes

Allows for catch-up contributions 

 yes

 yes

Taxes/penalizes early withdrawals 

 yes

yes

Requires mandatory distributions

yes

 

Unless you are making withdrawals for qualified expenses, withdrawing any or all of the funds will trigger a 20% mandatory tax withholding and a 10% early withdrawal penalty, if you are under age 59½, in addition to paying ordinary income tax.

Federal income tax laws are complex and subject to change. Neither the company nor its representatives give legal or tax advice. Please consult your attorney or tax advisor for answers to specific questions.

Not a deposit • Not FDIC or NCUSIF insured • Not guaranteed by the institution • Not insured by any federal government agency • May lose value

NFW-1346AO

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©2008 Nationwide Mutual Insurance Company. All rights reserved. Nationwide Investment Services Corporation, member FINRA. In MI only: Nationwide Investment Svcs. Corporation. Home Office: One Nationwide Plaza, Columbus, OH 43215-2220.