Compare IRAs
| Rollover IRA | Traditional IRA | Roth IRA | Coverdell ESA | |
|---|---|---|---|---|
| Appeals to eligible investors who: | Want to move retirement funds from an employer-sponsored plan to an IRA | Anticipate being in a lower tax bracket in retirement, or meet the criteria for making tax-deductible contributions and are most interested in a current tax deduction or not eligible to contribute to a Roth IRA | Want tax-deferred earnings and qualified tax-free distributions Expect their tax bracket to be the same or higher in retirement Looking for tax-free income at retirement Interested in passing IRA assets to their heirs May not need their IRA assets to cover living expenses during retirement |
Parents saving for their child's education |
| Minimum balance | $5.00 | $5.00 | $5.00 | $5.00 |
| Online Access | Access your account with Online Banking | Access your account with Online Banking | Access your account with Online Banking | Access your account with Online Banking |
| Annual Maximum Contribution | Eligible rollover amounts from employer sponsored plans are unlimited, but contribution limits are the same as Traditional IRAs | *See IRS limits Aggregated with other IRA accounts (except Education Savings Accounts, SEP & Simple Employer Contributions) |
*See IRS limits Aggregated with other IRA accounts (except Education Savings Accounts, SEP & Simple Employer Contributions) |
$2,000 per child, per year |
| Catch-Up Provisions (for individuals age 50 and older) | Same as Traditional IRA* | $1,000 per year | $1,000 per year | None |
| Contribution Deadline | April 15 of the following year, the tax filing deadline for Traditional IRA contributions. | April 15 of the following year, the tax filing deadline. | April 15 of the following year, the tax filing deadline. | April 15 of the following year, the tax filing deadline. |
| Restrictions on Contributions | Same as Traditional IRA* | Must have earned income | No age requirements Must have earned income and be within MAGI Limits. (Modified Adjusted Gross Income |
|
| Deductible Contributions | Same as Traditional IRA* | Subject to income limits and participation in an employer-sponsored plan | Non-deductible Contributions | Non-deductible Contributions |
| Rollover IRA | Traditional IRA | Roth IRA | Coverdell ESA | |
|---|---|---|---|---|
| Taxation on Distributions* | Same as traditional IRA Distributions are subject to current federal income taxes and a possible penalty (if the participant is under age 59½) |
Earnings and deductible contributions are taxed as ordinary income 10% federal tax penalty before age 59½ unless due to death, disability, eligible medical expenses, certain unemployed individual's health insurance premiums, limited "first time" home purchase ($10,000 life-time maximum), qualified higher expenses or IRS levy. No tax on non-deductible contributions |
Qualified distributions of contributions may generally be distributed tax- and penalty-free Earnings are distributed tax-free if held in Roth IRA for 5 years and meet one of the following qualified reasons: 1 - Over 59½ 2 - Death 3 - Disability 4 - 1st time home purchase Earnings are distributed penalty-free if any of the following reasons are met: 1-4 above and; -Education expense -Large medical expense -Health insurance premiums while unemployed All other reasons may be subject to 10% penalty |
Distributions are tax free if they are not more than the child's adjusted qualified education expenses. |
| Mandatory Distributions | Same as traditional IRA | Age 72 or Beneficiary (except spouse) must begin the year following the IRA owner's death |
None during lifetime Beneficiary (except spouse) must begin the year following the IRA owner's death |
At age 30. |
| Set-up costs | None | None | None | None |
| Annual Fee | None | None | None | None |
| Investment Choices | Options available with Texas Trust Investment Services Mutual Funds (load and no-load) Stocks Bonds Options on stocks and common indexes NCUA-insured credit union products (fixed-rate CDs) |
Options available with Texas Trust Investment Services Mutual Funds (load and no-load) Stocks Bonds Options on stocks and common indexes NCUA-insured credit union products (fixed-rate CDs) |
Options available with Texas Trust Investment Services Mutual Funds (load and no-load) Stocks Bonds Options on stocks and common indexes NCUA-insured credit union products (fixed-rate CDs) |
NCUA-insured credit union products (fixed-rate CDs) |