BCA4 Assignment4. Comparisons between a Traditional and a Roth IRA Choosing between a traditional and Roth IRA is a personal decision that is based on various factors such as your age, income, and retirement goals. Similarities and differences between the two are outlined in the following table. FeaturesTraditional IRARoth IRA Who can contribute?You can contribute if you (or your spouse if filing jointly) have taxable compensation, but not after you reach age 70 and older.You can contribute at any age if you (or your spouse if filing jointly) have taxable compensation and your modified adjusted gross income is below certain amounts. Are my contributions deductible?You can deduct contributions if you qualify.Your contributions are not deductible. How much can I contribute?The most you can contribute to all traditional and Roth IRAs is the smaller of: $5,500, or $6,500 if you are age 50 or older by the end of the year Taxable compensation for the year. What is the deadline to make contributions?Your tax return filing deadline (not including extensions). When can I withdraw funds?You can withdraw funds anytime. Do I have to take required minimum distributions?You must start taking distributions by April 1 following the year in which you turn age 70 and by December 31 of later years.Not required if you are the original owner. Are my withdrawals and distributions taxable?Any deductible contributions and earnings you withdraw or that are distributed from your traditional IRA are taxable. Also, if you are under age 59 you may have to pay an additional 10% tax for early withdrawals unless you qualify for an exception.None if it's a qualified distribution (or a withdrawal that is a qualified distribution). Otherwise, part of the distribution or withdrawal may be taxable. If you are under age 59 , you may also have to pay an additional 10% tax for early withdrawals unless you qualify for an exception. Source: excel Format: