| IRA Type | How much can I contribute? | What is taxed? | What is the tax impact? | Do RMDs apply? |
|---|---|---|---|---|
| Traditional | In 2026, $7,500 per year across all your IRAs, or $8,600 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.* | No, you won't have to take RMDs. |
| Rollover | Regular IRA contribution limits still apply. Generally, there is no dollar limit to the amount of assets that can be rolled over.** | Tax rules depend on the type of IRA you choose for your rollover—for example, a traditional or Roth IRA. | Tax impact depends on the type of IRA you choose for your rollover—for example, a traditional or Roth IRA. | RMD rules depend on the type of IRA you choose for your rollover—for example, a traditional or Roth IRA. |
Disclosure Title
Disclosures
Disclosure
*Roth IRA contributions may be withdrawn at any time without additional tax or penalty. Roth IRA earnings can be withdrawn tax-free after age 59½, so long as you made the first contribution to a Roth IRA more than five years ago. The IRS maintains a list of exceptions to early withdrawal restrictions.
**Generally, you can't do more than one rollover from the same IRA within a 1-year period. The once per year rule does not apply to Roth conversions, trustee-to-trustee transfers, IRA-to-employer plan rollovers, employer plan-to-IRA rollovers, or employer plan-to-employer plan rollovers.