Individual Retirement Accounts (IRAs)

Achieve Your Dreams, Today and Tomorrow

Retirement should be something you look forward to. After all, you’ve earned it!

With an Individual Retirement Account (IRA), you can reach your fantastic future faster. Adding a Ripco IRA to your retirement plan can offer certain tax advantages. The two most common accounts are the Traditional IRA and Roth IRAs. Each offers different benefits:

Traditional vs. Roth IRAs

Comparison table of Traditional IRA and Roth IRAs.
	Roth IRA	Traditional IRA
Contributions	Not tax-deductible	Tax-deductible (subject to certain limitations)
Earnings	Tax-free (subject to certain limitations)	Taxes deferred until you begin withdrawing funds
Withdrawals	Tax-free withdrawal of original contribution; potentially tax-free withdrawal of earnings if part of a qualified withdrawal	Taxable
Maximum Contributions (2023)	Up to $6,500.00 for those under 50; $7,500.00 for those 50 and older	Up to $6,500.00 for those under 50; $7,500.00 for those 50 and older
Eligibility	No age restrictions Must have earned income Certain Modified Adjusted Gross Income (MAGI) requirements must be met	Anyone with earned income may contribute up to age 70½
Tax/penalty Consequences	Contributions can be withdrawn anytime without taxes or penalties Earnings can be withdrawn without taxes or penalties if you are 59½ and your account has been open five years or more	All earnings and deductible contributions are taxable upon withdrawal Penalties will be assessed if withdrawals are taken before age 59½ or if withdrawals are not taken by 70½
Distribution Requirements	None	Required minimum distributions upon reaching age 70½
Exceptions to Penalties	Some exceptions are made if funds are used for a first-time home purchase, education or certain medical expenses	Some exceptions are made if funds are used for a first-time home purchase, education or certain medical expenses

Achieve Your Dreams, Today and Tomorrow

Traditional vs. Roth IRAs

Retirement Calculator