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|Traditional IRA||Roth IRA|
|2022: $6,000 annually||2022: $6,000 annually|
|Catch up contribution|
|If you are age 50 or older in the year of the contribution, eligible IRA holders can make an additional contribution of $1,000.||If you are age 50 or older in the year of the contribution, eligible IRA holders can make an additional contribution of $1,000.|
||Investment growth is tax-deferred and earnings can be withdrawn tax-free if the account has been open for at least five years and if certain requirements are met.|
|Contribution tax deductibility|
||Contributions are not tax deductible.|
|Distributions must begin by April 1 of the calendar year following the year you reach 70 ½ if you were born prior to 7/1/1949 or age 72 if you were born after 6/30/1949 and continue each year by December 31.||There is no required date for beginning distributions.|
|Taxable amounts withdrawn prior to age 59 ½ may be subject to an additional 10% penalty tax.||Premature withdrawals may be subject to federal and state taxes plus a 10% federal tax penalty.|
|Qualified early withdrawals|
Circumstances in which withdrawals can be made penalty free prior to age 59 ½ include:
Taxes apply to all earnings and all deductible contributions withdrawn.
Withdrawals are tax free if the account is open for at least five years and:
Distributions that are not qualified distributions are included in income to the extent attributable to earnings.
A 10% penalty tax will apply to the taxable portion of the non-qualified distribution unless an exception applies for individuals under the age of 59½.
|Rollovers and transfers|