Compare Your IRA Options

	Roth IRA	Traditional IRA	Coverdell Education Savings Account IRA
Can you deduct contributions?	No.	Contributions may be tax-deductible, depending on your income and participation in an employer-sponsored retirement plan.	Contributions for savings are tax-free for a minor’s education.
Who may make contributions?	Anyone who has earned income or whose spouse has earned income (subject to income limits).	Anyone under age 70½ who has earned income or whose spouse has earned income (subject to income limits).	Anyone can contribute. Contribution limit is $2,000 per year.
*Are qualified distributions taxed?**	No. Withdrawals may be made tax-free if the account has been open at least five years.	The account’s earnings and your deductible contributions are taxed as regular income; non-deductible contributions are not taxed.	Distributions made for “qualified education expenses“ are tax free.
Is there a minimum withdrawal requirement?	No. Withdrawals are not required at any age.	Yes. You must make at least minimum withdrawals beginning after age 70½.	No minimum. However, all distributions must be made by age 30.

* Qualified distributions are generally those made after age 59½, or before that for first-time home purchase or due to death or disability. Withdrawals from a traditional IRA to pay certain higher education expenses also qualify. This page is not intended to provide specific advice or recommendations. Please consult your tax advisor regarding your particular situation.

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