Roth IRA Open an Account
Benefits:
Any earnings grow federally tax-free, so you won’t need to pay taxes on earnings upon withdrawal

Earnings may be withdrawn after age 59½ tax-free, provided the account has been open for 5 years1

Contributions may be withdrawn at any age, penalty-free

Roth IRA Contribution Chart

Considerations:
2007: Contribution maximums:
$4,000 under age 50
$5,000 age 50 and over
2008: Contribution limits increase by $1,000

Withdrawals prior to age 59½ may be subject to a 10% penalty2

Contributions are not tax deductible and are subject to income limits
Traditional IRA Open an Account
Benefits:
Any earnings are federally tax-deferred until withdrawn, so more of your money is working for you

Contributions are tax-deductible for those eligible

Traditional IRA Contribution Chart

Considerations:
2007: Contribution maximums:
$4,000 under age 50
$5,000 age 50 and over
2008: Contribution limits increase by $1,000

Withdrawals prior to age 59½ may be subject to a 10% penalty2