Mutual Fund Education Alliance - Investment Goals

Mutual Fund Education Alliance - Investment Goals - IRA

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Are there restrictions or penalties for withdrawals?

Traditional IRA

Roth IRA

Any earnings and deductible contributions subject to tax upon withdrawal.

Distributions of contributions and qualified distributions of earnings are federally tax-free.

Contributions can be withdrawn at any time tax-free, without penalty.

Distributions are exempt from state taxes in most states.

Assets grow federally tax-free - This means you'll never have to pay federal income taxes on your earnings, provided certain requirements are met.

Are there restrictions or penalties for withdrawals?
Traditional IRA	Roth IRA
Yes. There is a 10% early withdrawal penalty if you are younger than 59½ and the withdrawal is not for the following reasons: Death or disability of the account owner Part of a series of substantially equal periodic payments Health insurance premium payments for unemployed individuals Payments of medical expenses in excess of 7.5% of an individual's AGI Qualified first time homebuyer Higher education expenses IRS levy	Yes. There is a 10% early withdrawal penalty if you are younger than 59½. It is the same as a Traditional IRA, plus your IRA must meet five year aging requirements.

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