A Closer Look at IRAs—Roth vs. Traditional
|Roth IRA||Traditional IRA|
|10% penalty for withdrawals prior to age 59½||Yes**||Yes**|
|Mandatory minimum withdrawals requiredto start at age 70½||No||Yes|
*Withdrawals after age 59½ may be taxable if the Roth IRA has not existed for at least five years. Penalty-free withdrawals can be taken due to death or disability, and for qualified first-time home purchases.
**Early withdrawals due to death or disability can be taken without penalty. Also, penalty-free withdrawals can be taken for qualified first-time home purchases, qualified higher education expenses, and if taken as substantially equal periodic payments (additional rules apply).
***Contributions to a traditional IRA are tax deductible up to certain limits.
Securities offered through LPL Financial, member FINRA/SIPC. Investment advice offered through Independent Financial Partners (IFP), a Registered Investment Advisor. Barnes Capital Group and IFP are separate entities from LPL Financial.