Traditional vs. Roth IRA calculator
Traditional IRA
Your contributions are made before tax so earnings reinvest improving potential savings growth over time.
Features:
Tax benefits
Tax-deferred growth. You get a tax break up front and pay taxes later. Contributions are tax-free and earnings grow tax-deferred.
Early withdrawal penalty
Yes. You may be subject to a 10% for withdrawals before age 59½, unless an exception applies.
Required Minimum Distributions (RMD)
MRD Applies as follows:
| Age 73 | for an individual who attains age 72 after December 31, 2022, and age 73 before January 1, 2033 |
| Age 75 | for an individual who attains age 74 after December 31, 2032 |
Age limits
Mandatory withdrawals as follows:
| Age 73 | for an individual who attains age 72 after December 31, 2022, and age 73 before January 1, 2033 |
| Age 75 | for an individual who attains age 74 after December 31, 2032 |
Income limits
No income limits.
Contribution limit (tax year 2023)
- Up to $6,500 if you’re 49 and under.
- Additional $1,000 if you are 50 and older*
* Age 50 and older before year-end.
Roth IRA
Your contributions are made after taxes for tax-free growth and potential tax-free income in retirement.
Features:
Tax benefits
Tax-deferred growth. You pay taxes up front and get a tax break later. Contributions are taxed as income and earnings grow federal tax-free if owned over five years.
Early withdrawal penalty
Yes, for earnings. No penalty for withdrawal contributions, but you may be subject to a 10% penalty for withdrawing earnings before age 59½.
Required Minimum Distributions (RMD)
Not subject to MRD.
Age limits
No age limits. No age limits for contributions or withdrawals.
Income limits
Some income limits. Depending on your income and tax filing status.
Contribution limit (tax year 2023)
- Up to $6,500 if you’re 49 and under.
- Additional $1,000 if you are 50 and older*
* Age 50 and older before year-end.
Consider a Rollover IRA
Why choose Voya
This material is provided for general and educational purposes only; it is not intended to provide legal, tax or investment advice. All investments are subject to risk. When redeemed, an investment may be worth more or less than the original amount invested. Neither Voya nor its affiliated companies provide tax or legal advice. We recommend that you consult an independent tax, legal or financial professional for specific advice about your individual situation.
The tax information herein is not intended to be used, and cannot be used by any taxpayer, for the purpose of avoiding tax penalties. Taxpayers should seek advice based on their own particular circumstances from an independent tax advisor.
Financial advisors and Financial Planning Consultants are Investment Adviser Representatives and Registered Representatives of, and offer securities and investment advisory services through Voya Financial Advisors, Inc. (member SIPC).