Traditional IRA
A Traditional IRA gives individuals the opportunity to direct pretax income towards investments that can grow tax-deferred. Another plus is that no capital gains or dividend income is taxed until it is withdrawn. STRATA gives you access to a wide array of investment opportunities through a self-directed Traditional IRA, which makes it a great complement to a conventional Roth or Traditional IRA. Many investors choose to have multiple IRAs as a way to truly diversify their portfolios.
Traditional IRA features:
Before making contributions, be sure to know the limits that apply.
Roth IRA
A Roth IRA gives you the opportunity to set aside after-tax income up to a specified amount each year. Earnings on the account and withdrawals are tax-free after age 59½.
Roth IRA features:
Before making contributions, be sure to know the limits that apply.
Traditional IRA vs. Roth IRA
Explore how self-directing an IRA enables investors the flexibility to build a powerful investment strategy. Which IRA is Right for You takes a deeper dive into IRA options available for individuals and business owners. You can also use our Roth vs Traditional IRA Calculator to see which IRA might be better for your specific situation. Below are some key differences between Traditional and Roth IRAs:
Traditional
- Annual contributions are tax-deductible
- Mandatory withdrawal by April 1 of the year following the year you reach age 72 (age 70½ if you attained age 70½ before 2020)
- Taxes are paid on earnings when withdrawn from the IRA
- Funds withdrawn before age 59½ are subject to a 10% penalty
Roth
- Annual contributions are not tax-deductible
- Mandatory withdrawal or distributions at any age is not required
- Earnings and principal are tax-free as long as you follow the IRS rules
- Principal contributions can be withdrawn any time without penalty as long as the required five-year holding period is met