Looking for a tax-smart way to save for your future? Find out what an IRA is, what it offers, and how the three main types differ.

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Three main types of IRAs
Traditional, Roth, and Rollover IRAs
IRA Type | How much can I contribute? | What is taxed? | What is the tax impact? | Do RMDs apply? |
---|---|---|---|---|
Traditional | In 2025, $7,000 per year across all your IRAs, or $8,000 if you’re 50 or older. | You’ll generally owe ordinary income tax on withdrawals, including RMDs. | Contributions are generally tax deductible, but the amount you can deduct depends on your income. | Yes, you’ll have to start taking RMDs starting at age 73. |
Roth | Same as above. But your income must fall under a certain amount to contribute to a Roth IRA. | Qualified distributions are not taxed. | Earning withdrawals are tax-free if you meet certain requirements.1 | No, you won’t have to take RMDs. |
Rollover | Regular IRA contribution limits apply. Generally, there is no dollar limit to the amount of assets that can be rolled over.* | Tax and RMD rules depend on the type of IRA you choose for your rollover—for example, a traditional or Roth IRA. | Tax and RMD rules depend on the type of IRA you choose for your rollover—for example, a traditional or Roth IRA. | Tax and RMD rules depend on the type of IRA you choose for your rollover—for example, a traditional or Roth IRA. |