Mutual Fund Resource Center

Planning for Retirement

Roth IRAs vs Traditional IRAs

Age Limit Can contribute at any age, provided you have taxable compensation Starting in tax year 2020, can contribute at any age, provided you have taxable compensation
Contribution Limits Maximum contribution for Tax Year 2022 is $6,000 ($7,000 if 50 or older).
Maximum contribution for Tax Year 2023 is $6,500 ($7,500 if 50 or older).
Click here for more information about current limits.
Contribution Deadline Contributions must be made by tax filing deadline NOT including extensions
Deductibility Contributions to a Roth IRA are never deductible, as they are after-tax funds Contributions may be deductible depending on income, filing status and whether or not you are covered by a retirement plan at work.  Click here for a chart of deductibility guidelines.
Income Limit One must have taxable compensation to be eligible to contribute. Click here for more information about income limits
Required Minimum Distributions (RMDs) RMDs do not apply for the original owner Starting in 2023, RMDs must begin at age 73.

Shareholders who turned 72 in 2022 or earlier must continue to take their RMDs as scheduled.
Taxation at time of distribution Distributions may not be taxed, provided you meet certain criteria

Contributions are always withdrawn tax-free

Earnings may be withdrawn tax-free after the 5 year holding period AND either age 59 ½, death, disability or 1st time home purchase
Distributions of pre-tax contributions and earnings are taxed as ordinary income
Penalties at time of withdrawal 10% penalty may apply to non-qualified distributions.  Some exceptions may be: death, disability or 1st time home purchase. 10% penalty may apply for distributions made before age 59 ½. Some exceptions may be: medical expenses, disability, 1st time home purchase, or birth or adoption of a child.

This information does not constitute tax advice. Please consult your tax advisor and/or state and local tax offices for more complete information.



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Guggenheim Investments represents the following affiliated investment management businesses of Guggenheim Partners, LLC: Guggenheim Partners Investment Management, LLC, Security Investors, LLC, Guggenheim Funds Distributors, LLC, Guggenheim Funds Investment Advisors, LLC, Guggenheim Corporate Funding, LLC, Guggenheim Partners Europe Limited, Guggenheim Partners Japan Limited, and GS GAMMA Advisors.

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