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Traditional IRA
- Tax deductible contributions1
- Taxes are paid on earnings when withdrawn from the IRA
- Available to everyone less than 70 ½; no income restrictions
- Funds withdrawn before age 59 ½ are subject to a 10% IRS penalty (subject to exception) and may be subject to a bank early withdrawal penalty
- Contributions are limited by taxable compensation for the year
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Roth IRA
- Contributions are not tax deductible1
- All earnings and principal are 100% tax-free if rules and regulations are followed
- No mandatory distribution age
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1Consult your tax advisor for details.