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You are here: Traditional verses Roth IRA
 
 

Roth or Traditional IRA

 
 
 

How old are you?

Your age may impact your eligibility as well as the minimum amount you're able to contribute.1

 
35
More
Less
 
 
 

What is your tax-filing status?

Your tax-filing status will help determine the applicable income range for both Roth IRA contribution eligibility and the potential tax deductability of a Traditional IRA contribution.

 
Single or Head of Household
 
Married, filing Jointly 2
 
 

What is your adjusted gross income (AGI)?

Your AGI may impact your eligibility to contribute to a Roth IRA or the deductability of your contribution to a Traditional IRA.

 
35
More
Less
 
 
 

Are you currently covered by an employer-sponsored plan?

If you are covered by an employer-sponsored plan, such as a 401(k) or a 403(b), deductability of your contribution to a Traditional IRA is tied to your AGI.

 
 
Yes
 
No
 
 
 
 

Note: If your spouse is covered by an employer-sponsored plan, deductability may be limited and this calculator does not take that situation into account. For more information, please see IRA Publication 590 or consult your tax advisor. Results based on information provided.

 
 
 

You qualify for both

Your may make a contribution to either a Roth or a Traditional IRA ‒ or a partial contribution to both.*

 
Based on your inputs WITH CODE WITH CODE
Tax benefits Tax-free1 growth.

Tax-free qualified.1 withdrawals
Tax-deferred growth.2

Contributions may be tax-deductible.3
Eligibility: Age Any age with employment compensation4 Under age 70½ with employment compensation4
Eligibility: Income WITH CODE No income limits.5
Catch-up contribution WITH CODE
Contribution deadline WITH CODE
Taxation at withdrawal WITH CODE WITH CODE
Penalties at withdrawal WITH CODE WITH CODE
Minimum required distributions (MRDs) Not subject to minimum required distributions during the lifetime of the original owner. MRDs starting at 70½.
Projected Growth
Open a Roth IRA Open a Traditional IRA

Fees and minimum investments

There is no cost to open and no annual fee for Fidelity's Traditional, Roth, SEP, and Rollover IRAs. A $50 account close out fee may apply. Fund investments held in your account may be subject to management, low balance and short term trading fees, as described in the offering materials. For all securities, see the Fidelity commission schedule for trading commission and transaction fee details.


Investments in mutual funds will continue to be subject to each fund's underlying fees and expenses. See a fund's prospectus for information on fund fees and expenses.


Learn more about IRAs
 
 

Note: If your spouse is covered by an employer-sponsored plan, deductability may be limited and this calculator does not take that situation into account. For more information, please see IRA Publication 590 or consult your tax advisor. Results based on information provided.

If information provided will vary in the following year, please re-enter in a separate session to obtain more accurate results for that year.

 
 
 

You qualify for a Traditional IRA

Based on the information you supplied, you may be eligible to make the full contribution of up to $6,500 for 2013 (of which $6,500 is tax deductible).1,4

 
 

Benefits of a Traditional IRA

 
  • Earnings and deductable contributions are taxed at the time of withdrawal.
  • No penalties for withdrawals after age of 58½.8
  • Required minimum distributions begin for the year in which you turn 70½.
  • Wide range of investment options.
 
 

Next Steps

 

Note: If your spouse is covered by an employer-sponsored plan, deductability may be limited and this calculator does not take that situation into account. For more information, please see IRA Publication 590 or consult your tax advisor. Results based on information provided.

If information provided will vary in the following year, please re-enter in a separate session to obtain more accurate results for that year.

 
 
 

You qualify for a Roth IRA

Based on the information you supplied, you may be eligible to make the full contribution of up to $6,500 for 2013 (of which $6,500 is tax deductible).1,4

 
 

Benefits of a Roth IRA

 
  • Earnings and deductable contributions are taxed at the time of withdrawal.
  • No penalties for withdrawals after age of 58½.8
  • Required minimum distributions begin for the year in which you turn 70½.
  • Wide range of investment options.
 
 

Next Steps

 

Note: If your spouse is covered by an employer-sponsored plan, deductability may be limited and this calculator does not take that situation into account. For more information, please see IRA Publication 590 or consult your tax advisor. Results based on information provided.

If information provided will vary in the following year, please re-enter in a separate session to obtain more accurate results for that year.

 
 
 

We're sorry. You don't qualify for an IRA

Based on the information you supplied, you are not eligible to contribute to an IRA.

 
 

Consider these investments:

 
  • Earnings and deductable contributions are taxed at the time of withdrawal.
  • No penalties for withdrawals after age of 58½.8
  • Required minimum distributions begin for the year in which you turn 70½.
  • Wide range of investment options.
 
 
 

Note: If your spouse is covered by an employer-sponsored plan, deductability may be limited and this calculator does not take that situation into account. For more information, please see IRA Publication 590 or consult your tax advisor. Results based on information provided.

If information provided will vary in the following year, please re-enter in a separate session to obtain more accurate results for that year.

 
 
 
IMPORTANT INFORMATION

Note: The IRA Evaluator is intended to serve as an educational tool, not investment or tax advice. Your circumstances are unique, therefore you should consult an investment professional if you feel you need more personal advice. Because your circumstances will probably change over time, it is a good idea to review your financial strategy periodically to be sure it continues to fit your situation. All examples are hypothetical and are intended for illustrative purposes only.

1 If you are 50 or older for the year in which you are contributing, the maximum annual contribution amount includes a catch-up contribution of $1,000. Contributions may not be made to Traditional IRAs beginning for the year you reach age 70½ and thereafter.

2 This calculator does not address Married, Filing Separately status. If you are Married, Filing Separately and your AGI is greater than $10,000, you may not be eligible to contribute to a Roth IRA or deduct your contribution to a Traditional IRA. For more information, please consult your tax adviser.

3 Adjusted Gross Income, as modified per IRS requirements. At least one spouse must have earned income to be eligible to contribute to an IRA. For more information, please see IRS Publication 590 or consult your tax adviser.

4 The IRA Evaluator is intended to serve as an educational tool, not investment or tax guidance therefore you should consult an investment professional if you feel you need more personal guidance. Because your circumstances will probably change over time, it is a good idea to review your financial strategy periodically to be sure it continues to fit your situation. All examples are hypothetical and are intended for illustrative purposes only

5 Roth IRA earnings withdrawn prior to the end of the five-year aging period and prior to reaching age 59½ will be subject to a 10% early withdrawal penalty unless used to meet qualified expenses.

6 Roth IRAs are not subject to the Minimum Required Distribution rules prior to the account owner's death.

7 A distribution from a Roth IRA is tax-free and penalty-free provided that the five-year aging requirement has been satisfied and one of the following conditions is met: age 59½, death, disability, qualified first-time home purchase.

8 Withdrawals before age 59½ may be subject to a 10% early withdrawal penalty.
 

Why Every Year Counts

 

 
 
 
 
 
 
 
 
 
 
 
 
 
$50,000
$40,000
$30,000
$20,000
$10,000
$0
DOG
DOG
 
Today
At Retirement
(35 years later)