IRAs Comparison Chart

Here are two great IRA savings options. See how they compare. Then you’ll be ready to start achieving your retirement goals.

 
Description
Contributions
Tax-Deductible Contributions
Qualified Withdrawals
Required Minimum Distributions/Withdrawals
Penalties for Non-Qualified Withdrawals
Contribution Age Limit
Rollovers/Conversions
Account Options
Covered by NCUA Insurance
Owners' Dividend Eligible

Traditional IRA

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Description

Save for retirement with pre-tax dollars

Contributions

Made with pre-tax dollars–contribution limits apply

Tax-Deductible Contributions

May be tax-deductible with specific eligibility requirements–consult your tax advisor

Qualified Withdrawals
  • Taxed as ordinary income
  • No penalty if over age 59½, first home purchase, or for qualified education expense
  • Some restrictions apply–consult your tax advisor
Required Minimum Distributions/Withdrawals

Required to take withdrawals starting the year you reach age 73

Penalties for Non-Qualified Withdrawals

Subject to 10% IRS penalty prior to age 59½

Contribution Age Limit

No age limit

Rollovers/Conversions

Can roll over 401(k) to a Traditional IRA

Account Options
  • Money Maker Account and Certificates
  • More options available through ESL Investment Services, LLC
Covered by NCUA Insurance

Yes

Owners' Dividend Eligibility

Yes

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Roth IRA

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Description

Save for retirement with funds that have already been taxed

Contributions

Made with money that has already been taxed–contribution limits apply

Tax-Deductible Contributions

Contributions are not tax-deductible–money has already been taxed

Qualified Withdrawals
  • Tax-free and IRA penalty free
  • No penalty if over age 59½, first home purchase, or for qualified education expense
  • Some restrictions apply–consult your tax advisor
Required Minimum Distributions/Withdrawals

No required withdrawals

Penalties for Non-Qualified Withdrawals

Subject to 10% IRS penalty prior to age 59½

Contribution Age Limit

No age limit

Rollovers/Conversions

Cannot roll over 401(k) or lump-sum distributions directly to a Roth IRA

Account Options
  • Money Maker Account and Certificates
  • More options available through ESL Investment Services, LLC
Covered by NCUA Insurance

Yes

Owners' Dividend Eligibility

Yes

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