When you are looking to invest for retirement it is important to run an IRA comparison to see which of the two types of IRAs is going to work best for you. The two types that you can choose from are a traditional IRA or a Roth IRA. Either option will save you money, however each one has specific benefits and you will need to carefully look at the difference as choosing the wrong one can actually take money out of your pocket.
There are several key areas that you should look at when doing your comparison. The first thing to look at is which one you qualify for as each one has their own set of qualifications. Qualifying for the traditional IRA is easy, any one under the age of 70 1/2 years that is earning an income or any nonworking spouse that is on a joint income tax return of someone working and both people are under 70 1/2 years old can apply. The Roth is a bit more complicated and is figured by your modified adjusted gross income (MAGI). There are certain restrictions that apply for how much can contribute depending on your MAGI and your marital status. These levels of income can change yearly so it is important to get an accurate chart each year.
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