Compare IRAs

 

  Traditional IRA Roth IRA Educational IRA
       
Contribution limits (lesser of chart numbers, or 100% of an individuals compensation) $5,000* $5,000* 2,000* per Child
       
Age limit on contributions 70½ None Under Age 18
       
Contribution tax-deductible? YES NO NO
       
Can convert to ROTH IRA? Yes, but will have tax consequences. N/A No
       
Can convert to Education IRA? No No Can be transferred to another Education IRA at another company for same child. Can also be transferred to another family member.
       
Can convert to Traditional IRA? N/A No No
       
Can be transferred to another Traditional IRA at another company. Yes N/A N/A
       
When is disbursement penalized? 10% penalty for withdrawals under age 59 ½, unless for: rollovers, medical withdrawals, first time home buyer, post secondary educations expenses, qualified reservists, roth conversion, equal periodic payments, disability, or death 10% penalty for withdrawals under age 59 ½ or on assets held in account less than 5 years 10% penalty on earnings if  not used for elementary, secondary or college education, or if not used by Age 30 (death or disability exempted). 
       
When is disbursement mandatory? Before age 70½ NEVER Before age 30 - Within 30 days of age 30 and/or death
       
Contribution Deadline By April 15th of following year By April 15th of following year By April 15th of following year

NOTICE OF CHANGES IN TEMPORARY FDIC INSURANCE COVERAGE FOR TRANSACTION ACCOUNTS

All funds in a "noninterest-bearing transaction account" are insured in full by the Federal Deposit Insurance Corporation from December 31, 2010, through December 31, 2012. This temporary unlimited coverage is in addition to, and separate from, the coverage of at least $250,000 available to depositors under the FDIC's general deposit insurance rules.

The term "noninterest-bearing transaction account" includes a traditional checking account or demand deposit account on which the insured depository institution pays no interest. It also includes Interest on Lawyers Trust Accounts ("IOLTAs"). It does not include other accounts, such as traditional checking or demand deposit accounts that may earn interest, NOW accounts, and money-market deposit accounts.

For more information about temporary FDIC insurance coverage of transaction accounts, visit www.fdic.gov.

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