Considering Converting a Traditional IRA to a Roth IRA?
It’s become an attractive and popular idea with many folks saving for retirement.
Unlike a traditional IRA, a Roth lets most people amass more savings because they pay taxes on contributions now and earn tax-free income later. Keep in mind that in order to convert your IRA, you must be 59½ or older and have had the account for at least five years.
Should you convert?
See the chart below that compares traditional and Roth IRAs − and use our Roth IRA Conversion Calculator (FLASH) to help you decide.
Call us
If you have questions or need more information, you can talk with an investment professional by calling 1-877-245-0761.
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
Contact Us
Account Services
1-800-848-6331
Questions?
1-877-245-0761
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