- DIGITAL BANKING
- NORTHFIELD INVESTMENT SERVICES
|Features||Traditonal IRA||Roth IRA|
|Minimum Balance to Open||$250.00||$250.00|
|Age Requirement||Contribute up to 701/2||Contribute at any age|
|Income Limitations||None||Your income can affect how much you can contribute|
|Early Withdrawal Penatly||If you make withdrawals before you're 591/2, your might have to pay a 10% penalty.||If you make withdrawals before you're 591/2, you might have to pay taxes on your earnings plus a 10% additional tax.|
|Required Minimum Distributions (RMDs)||The year that you reach 72 (70 ½ if you reach 70 ½ before January 1, 2020).||RMDs do not apply|
With a Roth IRA, you can contribute at any age, and your money grows tax-deferred. A Roth IRA features tax credits, which means you may be eligible for a dollar-for-dollar reduction in your taxes, and you can also enjoy tax-free withdrawals (when you withdraw contributions first).(1)
Speak with a personal banker at your local branch who will give you one-on-one attention and help you decide which option works best for you.
(1) Be sure to speak to your tax advisor about your individual tax situation.