Defer taxes on your earnings until they are withdrawn. Certain contributions are tax-deductible in the tax year for which they are made.

• Qualifications: Must have earned income and not reached age 72 by end of the year
• Maximum Contributions: $7,000 if you are under age 50; $8,000 annually if you are 50 or older which includes a $1,000 catch-up contribution.
• Tax Status of Earnings: Tax-deferred until withdrawn
• Contribution Restrictions: Yes, if you are an active participant in an employer retirement plan
• IRA Early Withdrawal Penalties: Yes, except:
  1. Over 59 ½ years and taking regular distributions;
  2. Death or disability;
  3. Qualified medical expenses;
  4. Certain health insurance;
  5. Qualified college expenses;
  6. First-time home purchase (up to $10,000);
  7. Due to IRS levy
• Required Distributions: For traditional IRAs required minimum distributions (RMDs) must begin at age 73 if you reached age 72 after December 31, 2022. 
• Contributions : You can contribute to a traditional IRA as long as you have earned income, regardless of your age. Earned Income requirement: contributions are allowed as long as you do not exceed your earned income for the year. 

This nondeductible account features tax-free withdrawals for certain distribution reasons after a five-year holding period.

• Qualifications: Must have earned income; no age restrictions
• Maximum Contributions: $7,000 if you are under age 50; $8,000 if you are 50 or older, this includes a $1,000 catch-up contribution
• Tax Status of Earnings: Earnings grow tax-free
• Tax Deduction: No
• IRA Early Withdrawal Penalties: Contributions can be withdrawn at any time without taxes or penalties. However, earnings can only be withdrawn tax-free if the account has been open for at least 5 years or:
  1. Over 59 ½ years and taking regular distributions;
  2. Death or disability;
  3. Qualified medical expenses;
  4. Certain health insurance;
  5. Qualified college expenses;
  6. First-time home purchase (up to $10,000);
  7. Due to IRS levy (There may be an additional time deposit withdrawal penalty.)
  8. While the 10% penalty may be waived for an exception, the withdrawn earnings may still be subject to ordinary income tax unless the conditions for a qualified distribution is met. (for example: account open for 5 yrs. and meeting one of the qualified events) 
• Required Distributions: No required distributions. Beneficiaries who inherit Roth IRAs must follow certan rules. For more information visit www.irs.gov or your tax consultant.

Formerly known as the Education IRA, the CESA can be used to pay for higher education as well as qualified elementary school and second school expenses.

• Qualifications: Designated beneficiary must be under the age of 18 (this limitation does not apply to any designated beneficiary with special needs)
• Maximum Contributions: $2,000 per beneficiary (Contributions do not count against limits for IRAs)
• Tax Status of Earnings: Earnings grow tax-free
• Tax Deduction: No
• IRA Penalties for Early Withdrawal: None, if used for payment of qualified education expenses (time deposit penalties may apply)
• Required Distributions: Must be complete 30 days after beneficiary reaches age 30 or after date of death. Certain transfers to members of the beneficiary's family are permitted. 
• For more information visit IRS.gov or your tax consultant.