Traditional vs. Roth

Review the advantages of each retirement plan.

Citizens Bank & Trust can help you find solutions for managing your retirement investments. Whether you are opening your first retirement account, making an annual contribution, transferring or converting an existing account or rolling over an employer-sponsored retirement plan, we offer alternatives to meet your individual situation.

Traditional or Roth IRA?

As you compare your options, keep in mind that although Traditional and Roth IRAs are both tax-deferred, there are significant differences between them.

Traditional IRA

• Individuals with taxable compensation and under age 70 1/2 can contribute to a Traditional IRA
• Contributions may be fully or partially tax deductible
• Earnings grow tax deferred
• No contributions after age 70 1/2
• Money withdrawn prior to age 59 1/2 subject to a 10% early distribution penalty

Roth IRA

• Individuals with taxable compensation within certain limits
• Contributions are not tax deductible
• Earnings grow tax deferred and may be tax free
• No age limit on contributions
• No mandatory distributions at age 70 1/2
• Contributions may be withdrawn at any time without income tax or penalty

Contribution Limits for Traditional and Roth IRAs