Individual Retirement Account (IRA) Comparison
An IRA is an important tool to help you plan for a financially secure retirement. Compare and choose your IRA plan options from the chart below; then come to us and we’ll help you select the investment products you’re most comfortable with.
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Roth IRA |
Traditional IRA |
Taxes |
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| Contributions | Contributions are not tax deductible. Contributions can be withdrawn at any time without taxes or penalties.1 | Contributions are fully tax-deductible if neither you nor your spouse participates in a 401(k) or other employer-sponsored retirement plan. |
| Earnings and qualified withdrawals | Earnings and qualified withdrawals are tax-free. Earnings may be withdrawn without taxes or penalties if you are age 59 ½ or older and your account has been open for the five-year holding period. Exceptions to penalties may be made if funds are used for certain purposes, including first-time home purchase ($10,000 lifetime limit), higher education, certain medical expenses, etc. | All earnings and tax-deductible contributions grow tax-deferred and are taxable upon withdrawal. Penalties will be assessed if you make withdrawals before age 59 ½ or if withdrawals do not begin in the year you turn 70 ½. Exceptions to penalties may be made if funds are used for certain purposes, including first-time home purchase ($10,000 lifetime limit), higher education, certain medical expenses, etc. |
Contributions |
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| Maximum annual contribution | For tax year 2014: up to $5,500; $6,500 for those age 50 and over. | For tax year 2014: up to $5,500; $6,500 for those age 50 and over. |
| Eligibility | You must have earned income. Ability to contribute is based on your income. If you earn too much to make a full contribution, you may be able to make a partial contribution. | You must have earned income. |
| Contribution age limit | None | Up to age 70 ½ |
Distribution requirements |
None | Required after age 70 ½ |
1 For Traditional-to-Roth conversions, any converted amounts withdrawn within five years may be subject to taxes and penalties. This site is provided for your information and does not constitute tax advice. Please consult with your accountant or tax advisor for specific guidance.
With all retirement plans you can choose from a variety of FDIC-insured accounts as well as non-insured products* through First South Wealth Management.
Call 800.946.4178 or visit your nearest First South location.
* Securities offered by First South Wealth Management are not deposits, not FDIC-insured, not guaranteed by the bank and may lose value.