Both Traditional and Roth IRAs offer potential tax advantages as an incentive to save and invest for retirement. There are important differences, including differences in eligibility and tax treatment.
There is also a Rollover IRA option which is a Traditional IRA to which you plan to roll over retirement assets from an employer-sponsored qualified retirement plan or another IRA (other than a Roth IRA). You can use this account to maintain the tax-deferred status of your retirement assets. Learn more about Rollover IRAs.
What they have in common:
- Annual Contribution limit for 2019 and 2020 – $6,000 ($7,000 age 50 and older)
- Minimum investment – No minimum with Morgan Stanley Direct Access
- Fees – No account maintenance, low balance or trade processing fees
- Trade Commissions – $0 for online stock and ETF trades1