Traditional IRA or Roth IRA?

Do you know the difference between a Traditional IRA and a Roth IRA? For starters, a Traditional IRA is funded by pretax dollars, while a Roth IRA is funded by after-tax dollars. The following chart highlights some more important information about these two types of IRAs. You can download an application kit for a Mutual of America Traditional IRA or Roth IRA, both variable annuity contracts. To learn more, call your local Mutual of America Regional Office representative.

  Traditional IRA Roth IRA
Who is eligible?1 Anyone under age 70½ with earned income can contribute, but tax deductibility is based on income limits and participation in an employer plan. Single tax filers with an Adjusted Gross Income (AGI) of $120,000 or less; married couples filing jointly with modified AGIs of less than $199,000 (phase-out begins
at $189,000).
What are the 2018
contribution limits?
$5,500. If you're age 50 or older,
it's $6,500.
$5,500. If you're age 50 or older,
it's $6,500.
Are my contributions tax deductible? Yes, if you satisfy certain income requirements, your contributions to a Traditional IRA are tax deductible. No, you can't deduct your Roth
IRA contribution.
Are my withdrawals taxable? Ordinary income taxes will apply to deductible contributions and earnings you withdraw or that are distributed from your
traditional IRA.2
The Roth IRA provides the opportunity for tax-free investment earnings and tax-free distributions if qualified distributions are made.3
Do I have to take required
minimum distributions?
In general, when you turn 70½, if you're retired, the IRS requires you to begin taking annual withdrawals from your Traditional IRA. No, it is not required if you are the original owner.

1

For more information about eligibility and Adjusted Gross Income, please visit Individual Products.

2

If you are under age 59½, you may also have to pay an additional 10% tax for early withdrawals unless you qualify for an exception.

3

A qualified distribution is a distribution that is made: 1) at least five taxable years after a contribution is made, starting with the year in which a contribution is made, and on or after attainment of age 59½, or for a qualified first-time home purchase of up to a $10,000 maximum lifetime limit, or 2) as a result of death or disability.


Before investing, you should carefully consider the investment objectives, risks, charges and expenses of the variable annuity contract and the underlying investment funds. This and other information is contained in the contract prospectus or brochure and underlying funds prospectuses and summary prospectuses. Please read the contract prospectus or brochure and underlying fund prospectuses and summary prospectuses carefully before investing. The contract prospectus or brochure and underlying fund prospectuses and summary prospectuses can be obtained by mail or by calling 1-800-468-3785.

Mutual of America's group and individual retirement products are variable annuity contracts and are suitable for long-term investing, particularly for retirement savings. The value of a variable annuity contract will fluctuate depending on the performance of the Separate Account investment funds you choose. Upon redemption, you could receive more or less than the principal amount invested. A variable annuity contract provides no additional tax-deferred treatment of benefits beyond the treatment provided to any qualified retirement plan or IRA by applicable tax law. You should carefully consider a variable annuity contract's other features before making a decision.


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