Deciding Which Vantagepoint IRA Is Right for You.

The Vantagepoint Traditional IRA and the Vantagepoint Roth IRA can help you address both future and current financial needs, but they differ significantly in their tax treatment of contributions and distributions. We’ve created a table below comparing the Roth IRA and the Traditional IRA to make it easier to understand the differences.

In making your selection, be sure to consider

• the particular benefits each kind of IRA has to offer
• the number of years until you retire
• your current and future tax bracket
• how you can split the maximum annual contributions between both a Vantagepoint Traditional IRA and a Vantagepoint Roth IRA

Certain rules and guidelines apply to both Roth and Traditional IRAs. Click here for more information on IRA rules and guidelines.

	Roth IRA	Traditional IRA
Key tax advantage	Tax-free growth potential	Contributions may be tax deductible
2008 Maximum annual contribution (See 2009)	$5,000 or earned income ($10,000 for some couples)
2008 Eligibility (See 2009)	No age requirement; any individual with earned income within the allowable guidelines*: Elig. Married Single Full <$159,000 <$101,000 Partial $159,001–  $169,000 $101,001–  $116,000 None >$169,000 >$116,000 *Dollar figures represent Modified Adjusted Gross Income, on your 1040 tax form	Anyone with earned income from wages or salary under the age of 70½ (on December 31 of the year).
Earnings grow tax-deferred	Yes	Yes
Earnings taxed upon withdrawal	No, if held five years, and you are 59½ or older, or if other rules are met	Yes
Contributions taxed upon withdrawal	No	Yes, if deductible
Contributions deductible from income tax in 2008 (See 2009)	No	Contributions are tax deductible within the following income limits*: Deductibility Married Single Full <$85,000 <$53,000 Partial $85,001–  $105,000 $53,001–  $63,000 None >$105,000 >$63,000 *Dollar figures represent Modified Adjusted Gross Income, on your 1040 tax form
Penalty-free withdrawals	Yes, if you are 59½ or older, or other rules are met.
Subject to minimum withdrawal requirement after age 70½	No	Yes
Contributions allowed after age 70½	Yes	No

If you’re uncertain which option is best for your circumstances, try our free online IRA Calculators to help you choose the kind of Individual Retirement Account (IRA) right for your needs. You’ll find additional resources in the Planning and Tools section of this site.

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