Compare Traditional vs. Roth IRA

Individual Retirement Accounts (IRAs) are specially designed to help you save for retirement. There are two IRAs for individuals: Traditional and Roth. The table below compares the features of each one, based on what may be most important to you.

Summary

Traditional IRAs may be a good choice if you are seeking a tax deduction, your income is too high to be eligible for a Roth IRA, or you believe you will be in a lower tax bracket in retirement.

Roth IRAs may be a good choice if you are seeking tax-free withdrawals in retirement, want to avoid required minimum distributions beginning at age 70 1/2, or feel you will be in the same or a higher tax bracket in retirement.

You can open and manage your Traditional or Roth IRA in a number of ways. To get started, select your account or talk to a Wells Fargo retirement professional at 1-877-493-4727.


What's most important to you:

Traditional IRA
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Roth IRA
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Getting a tax deduction on my contribution (if certain conditions are met)
Yes

Tax-free withdrawals on my savings during retirement(if certain conditions are met)

Yes
Tax-deferred growth on my retirement savings
Yes
Yes
Penalty-free access to my annual contributions before retirement

Yes
The ability to avoid Required Minimum Distributions (RMDs) after age 70 1/2

Yes
The ability to contribute to an IRA in addition to my retirement plan at work
Yes
Yes
The ability to contribute after age 70 1/2

Yes
The ability to roll over my pre-tax 401(k) plan without paying taxes
Yes

The ability to get tax-deferred growth on my savings because my income is too high to make a Roth IRA contribution
Yes

Traditional IRA

The ability to deduct your traditional IRA contribution is determined by your income and access to a retirement plan at work. Our IRA Eligibility Calculator can help determine if you are eligible for a tax deduction.

Roth IRA

Your eligibility to contribute to a Roth IRA is determined by your income. Our IRA Eligibility Calculator can help determine if you are eligible.