Raymond James & Associates, Inc. Wilmarth Private Wealth Management Steven T Wilmarth, CEP®, WMS® Managing Director 202 N. Harbor City Blvd. Suite 301 Melbourne, FL 32935 321-253-7911 877-210-0769 steve.wilmarth@raymondjames.com www.wilmarthpwm.com
| |
| | |
|
IRAs
|
|
| | Comparison of Traditional IRAs and Roth IRAs |
Traditional IRA | Roth IRA |
---|
Maximum yearly contribution (2024) | Lesser of $7,000 or 100% of earned income ($8,000 if age 50 or older) | Lesser of $7,000 or 100% of earned income ($8,000 if age 50 or older) |
---|
Income limitation for contributions | No | Yes |
---|
Tax-deductible contributions | Yes. Fully deductible if neither you nor your spouse is covered by a retirement plan. Otherwise, your deduction depends on your income and filing status. | No. Contributions to a Roth IRA are never tax deductible. |
---|
Age restriction on contributions | No | No |
---|
Tax-deferred growth | Yes |
Yes; tax free if you meet the requirements for a qualified distribution. |
---|
Required minimum distributions during lifetime | Yes. Distributions must begin by April 1 following the year you reach age 73 (75 for those who reach age 73 after December 31, 2032). | No. Distributions are not required during your lifetime. |
---|
Federal income tax on distributions | Yes, to the extent that a distribution represents deductible contributions and investment earnings. | No, for qualified distributions. For nonqualified distributions, only the earnings portion is taxable. |
---|
10% penalty on early distributions | Yes, the penalty applies to taxable distributions if you are under age 59½ and do not qualify for an exception. | No, for qualified distributions. For nonqualified distributions, the penalty may apply to the earnings portion. (Special rules apply to amounts converted from a traditional IRA to a Roth IRA.) |
---|
Includable in taxable estate of IRA owner at death | Yes | Yes |
---|
Beneficiaries pay income tax on distributions after IRA owner's death | Yes, to the extent that a distribution represents deductible contributions and investment earnings. | Generally no, as long as the account has been in existence for at least five years. |
---|
|
|
|
|
|
Raymond James & Associates, Inc., member New York Stock Exchange/SIPC
This information, developed by an independent third party, has been obtained from sources considered to be reliable, but Raymond James does not guarantee that the foregoing material is accurate or complete. This information is not a complete summary or statement of all available data necessary for making an investment decision and does not constitute a recommendation. The information contained in this report does not purport to be a complete description of the securities, markets, or developments referred to in this material. This information is not intended as a solicitation or an offer to buy or sell any security referred to herein. Investments mentioned may not be suitable for all investors. The material is general in nature. Past performance may not be indicative of future results. Raymond James does not provide advice on tax, legal or mortgage issues. These matters should be discussed with the appropriate professional.
|
Prepared by Broadridge Investor Communication Solutions, Inc. Copyright 2024. |
|