Your earnings grow tax-deferred and, if eligible, your contributions may be tax deductible as well. You can also roll over your 401(k) or employer-sponsored qualified retirement plan to consolidate all your retirement assets.

You make after-tax contributions but the money you withdraw after retirement may be free from federal taxes.

You can contribute up to the year you turn 72 as long as you have earned income.

You can contribute at any age as long as you have earned income and meet the income limitations.

$7,000 ($8,000 age 50 and older) for 2025.

$7,000 ($8,000 age 50 and older) for 2025.

You can deduct your contributions if you meet the eligibility requirements.

Contributions are made in after-tax dollars and are not tax-deductible.

Tax deductible contributions and earnings are taxed as ordinary income when withdrawn.

After-tax contributions are withdrawn tax-free.

Contributions (all are made after-tax) are always income tax-free. Earnings may be income tax-free if the account is held for 5 years and are withdrawn for a qualified reason. Withdrawal of earnings for nonqualified reasons may be taxed as ordinary income and subject to an early withdrawal penalty.

10% IRS early withdrawal penalty if withdrawn before age 59 1/2 unless exception applies.

No penalties for withdrawals of contributions. 10% IRS early withdrawal penalty if earnings withdrawn before age 59 1/2 unless exception applies.