Roth or Traditional, Spencer has the right IRA for you The Roth IRA reduces and/or limits contributions based on your income level and tax filing status. Contributions to a Roth IRA are not deductible. IRA age limits To contribute to a Traditional IRA, you must be under age 70 1/2 during the entire year for which you are contributing. You may contribute to a Roth IRA regardless of your age. IRA Rollovers You may rollover your Traditional IRA to another Traditional IRA, regardless of your income level. Roth IRAs also allow you to rollover your IRA, regardless of your income level. Distributing your IRA You must begin to take distributions from your Traditional IRA beginning by April 1 of the year following the year you turn 70 1/2. These distributions are fully taxable, except for the return of any nondeductible contributions. There are no age requirements for taking deductions from your Roth IRA. After five years, all Roth IRA distributions are tax-free, including earnings if you are over the age of 59 1/2, disabled, or a first-time homebuyer. Otherwise, only your Roth IRA earnings are taxable, not the contributions. Contributions for your Roth IRA are always distributed before earnings. The IRS 10% early distribution penalty is applied to the taxable portion of distributions from both Traditional and Roth IRAs. In addition, this penalty applies to certain conversion contributions within the first five years, unless youÕve reached the age of 59 1/2, or if an exception applies. <--Back