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Traditional vs. Roth

Not sure whether to invest in a Traditional or Roth IRA? Use the chart below as a guide to find out which type of IRA is the right fit for you.

  Traditional IRA  Roth IRA 
Eligibility* 
  • Anyone with U.S.-earned income may contribute up to age 70½
  • Anyone with U.S.-earned income may contribute
Tax advantages
  • Earnings grow tax-deferred
  • Contributions may be tax-deductible
  • Earnings are tax-free if taken in qualified distributions
Minimum to open an account
  • $1,000 initial minimum investment per fund
  • $100 subsequent minimum purchases per fund 
  • $1,000 initial minimum investment per fund 
  • $100 subsequent minimum purchases per fund
Contribution limits  
  • For 2014 and 2015: $5,500; $6,500 if age 50 or older  
  • For 2014 and 2015: $5,500; $6,500 if age 50 or older  
Contribution deadline
  • The deadline for a 2014 contribution is April 15, 2015
  • The deadline for a 2014 contribution is April 15, 2015
When distributions are required by law
  • Distributions must start after age 70½
  • Distributions are not required at any age

Who may benefit from a Traditional/Roth IRA

 

 

  • Plan to retire in a lower tax bracket
  • Want to invest more than your retirement plan allows
  • Looking for a retirement planning option for a spouse or family members
  • Not eligible for a Roth IRA due to income limitations
  • Don't have access to an employer-sponsored retirement plan
  • Plan to retire in a higher tax bracket
  • Seeking tax-free income at retirement
  • Want access to contributions without penalty
  • Want to make contributions after age 70½
  • Looking for a retirement planning option for a spouse or family members

Already have a GuideStone IRA? Log in to contribute. 

*See IRS Publication 590, Individual Retirement Arrangements (IRAs), for details including IRA eligibility, how to calculate modified adjusted gross income (MAGI) and contribution limits.

Retail products such as IRAs, personal investment options and institutional investment opportunities are made available through GuideStone Financial Services, member FINRA. GuideStone Capital Management provides investment advisory services for the funds. Both GuideStone Financial Services and GuideStone Capital Management are controlled affiliates of GuideStone Financial Resources.