Janus
Log In
Log Out
IRA Comparison
The Janus Advantage
 

The following table is a point-by-point comparison of a Traditional IRA and a Roth IRA, including information on tax features, eligibility and maximum contributions. If you'd like to see more information about either of these IRA types, click the corresponding Details links at the bottom of this page.

 

Traditional IRA

Roth IRA

Description An individual retirement account allowing either tax-deductible or nondeductible contributions and earnings to grow tax-deferred until they are withdrawn. An individual retirement account allowing for tax-free withdrawals of nondeductible contributions and earnings.
Tax-Deductible Contributions - If you and your spouse are not covered by an employer-sponsored retirement plan, contributions are tax deductible regardless of income.
- If you or your spouse is covered by an employer-sponsored retirement plan, your deductible amount is dependent on your adjusted gross income.
- Please refer to the Traditional IRA tax deductibility table.
Contributions are not tax deductible.
Tax-Deferred Growth Your earnings are tax-deferred until you withdraw them. Your earnings are tax-deferred until you withdraw them.
Tax-Free Withdrawals Your withdrawals are taxable and deductible contributions and earnings will be taxed at your existing income tax rate upon withdrawal. If an account has been established for five years, contributions and their earnings may be distributed tax-free after age 59½.
Eligibility Taxpayers who have earned income and nonworking spouses under age 70½. Taxpayers who have earned income and nonworking spouses of any age.
Maximum contributions - $5,500 or 100% of earned income (whichever is less) for tax year 2013, and 2014.
- "Catch-up" contributions of $1,000 for tax years 2013 and 2014 may be available to individuals age 50 or older.
- To be eligible for the "catch-up" contribution, you must have reached age 50 on or before December 31 of the year for which the contribution is being made.

- Up to $5,500 or 100% of earned income (whichever is less) for tax years 2013 and 2014.
- "Catch-up" contributions of $1,000 for tax years 2013 and 2014 may be available to individuals age 50 or older.
- To be eligible for the "catch-up" contribution, you must have reached age 50 on or before December 31 of the year for which the contribution is being made.
Your adjusted gross income may limit your contribution amount. Please consult the Contribution Limit chart for details.

Required minimum
distributions
Required minimum distributions must begin at age 70½. There are no required minimum distributions.

Please consider the charges, risks, expenses and investment objectives carefully before investing. Please see a prospectus , or if available, a summary prospectus containing this and other information. Read it carefully before you invest or send money.

Tax information contained herein is not intended or written to be used, and it cannot be used by taxpayers for the purposes of avoiding penalties that may be imposed on taxpayers. Such tax information and any estate planning information is general in nature, is provided for informational and educational purposes only, and should not be construed as legal or tax advice.

A IRA should be considered a long-term investment. IRAs generally have expenses and account fees, which may impact the value of the account. Non-qualified withdrawals may be subject to taxes and penalties. Maximum contributions are subject to eligibility requirements. Depending on your eligibility, you may not be able to contribute the maximum amount. For more detailed information about taxes, consult IRS Publication 590 or your tax adviser regarding your personal circumstance.

^ IMPORTANT: Maximum contributions are subject to eligibility requirements. Depending on your eligibility, you may not be able to contribute the maximum amount. Consult IRS Pub 590 (for Education Savings Accounts, consult IRS Pub 970) or your tax adviser regarding your personal circumstance. For IRAs, investors age 50 and older may be able to invest an extra $1,000.

Janus Distributors LLC