|Features||Traditional IRA||Roth IRA|
|Contribution limit based on income||No||Yes|
|Contributions are tax-deductible||Potentially||No|
|Age limit to participate||Yes||No|
|Earnings’ tax treatment||Tax-deferred1||Tax-free2|
|Required Minimum Distribution||Yes||No|
|Pay Taxes at time of withdrawal||Yes||No2|
1Earnings on contributions you make to a Traditional IRA will grow tax-deferred, which means you won’t be taxed on earnings until you start making withdrawals from the account (at an eligible age).
2 Withdrawals from Roth IRAs are tax-free and penalty-free if certain requirements are met.