Roth IRA
• Withdraw earnings tax-free if they remain in IRA for at least 5 years and you are 59 ½ or older
• Contributions can be withdrawn tax-free at anytime
• More attractive to some investors because of more flexible rules on early withdrawals
• Make contributions up to the maximum limit or your earned income, whichever is less
Traditional IRA
• Defer taxes on earnings and tax-deductible contributions until withdrawn
• Contributions may be tax-deductible for the year they are made
• Make contributions up to the maximum limit or your earned income, whichever is less
Coverdell (Educational) IRA
• Save up to $2,000 per child annually with these benefits.
• Withdraw funds and earnings tax and penalty-free if used for qualified education expenses.
• Include expenses such as tuition, fees, books, supplies, equipment, and in some cases room and board, and computers.
• Use for qualified elementary and high school expenses at most public, private and parochial schools.