There are various types of individual retirement accounts (IRAs), including traditional, and Roth IRAs.

You are eligible for a regular contribution if you do not reach age 70½ in the calendar year you wish to contribute, and you have compensation (income earned from performing material and personal services). You may also qualify for a rollover or a transfer contribution.

You may contribute to your traditional IRA and your Roth IRA for the same year but are subject to the applicable contribution limit for such years. You may also make nondeductible contributions when you cannot claim a tax deduction.

The contribution limit for a person who is younger than age 50 or older than age 50 varies. Please see the grid comparison.

Roth IRAs
Contributions to a Roth IRA are made with after-tax dollars but grow tax-free.

For 2018, the annual limit for contributions is $5,500 (or $6,500, under the catchup provision) and may be reduced if your modified adjusted gross income exceeds the following:

Single $135,000 (phase-out begins at $120,000)
Married filing jointly $199,000 (phase-out begins at $189,000)
For 2019, the annual limit for contributions is $6,000 (or $7,000, under the catchup provision) and may be reduced if your modified adjusted gross income exceeds:
Single $137,000 (phase-out begins at $122,000)
Married filing jointly $203,000 (phase-out begins at $193,000)
Contributions to Roth IRAs may be further reduced by contributions made to a regular IRA.

Income limitation also applies to conversions of traditional IRAs into Roth IRAs. Such rollovers are taxable but may benefit investors with a longer time horizon.

The Roth IRA offers tax deferral on any earnings in the account. Withdrawals from the account may be tax-free if they are considered qualified. Limitations and restrictions may apply. Withdrawals before age 59½ or before the account is opened for five years, whichever is later, may result in a 10% IRS penalty tax. Future tax laws can change at any time and may impact the benefits of Roth IRAs. Their tax treatment may change.

Learn more about strategies to attain your financial goals, such as Retirement Solutions, IRAs, Changing Jobs (Rollovers), retirement (Rollovers and Immediate Annuities), College Savings, 529 Plans, and Estate Tax Planning.

IRAs Comparison Grid
Regular contributions to IRAs can be a great way to help pursue your retirement goals. Our IRA Comparison Grid lets you compare IRA options side by side.