Individuals looking to lower taxable income now and expecting a lower tax bracket in retirement.
Those expecting to be in the same or a higher tax bracket, as withdrawals are taxed as ordinary income.
Pre-tax dollars, reducing your taxable income.
Withdrawals are taxed as ordinary income.
No income limits for contributions. Deductibility depends on income and whether you have a workplace retirement plan.
Required starting at age 73
Individuals expecting a higher tax bracket in retirement or who prefer tax-free income later in life.
BuzzWorthy Note: 52% of households chose Roth in 2022.
Those seeking an immediate tax deduction (because Roth IRA contributions are made with after-tax dollars, so you’ve already paid the taxes).
After-tax dollars, allowing for tax-free growth and withdrawals in retirement.
Earnings are tax-free if you’re at least 59½ and have had the account for at least five years.
Your ability to contribute depends on your income, with full contributions available under certain income thresholds.
Not required during the account holder's lifetime.
Our Retirement Explained section offers insights so you can be retirement confident.
When you rollover your 401(k), your pre-tax contributions will be directed into a Traditional IRA, while any post-tax contributions will go into a Roth IRA to preserve the tax status of your savings.
Your dedicated BeeKeeper helps you through every step of your rollover - contacting your old provider and ensuring a smooth transfer - so you can take control of your retirement, hassle-free.
We offer Roth and Traditional IRAs so you can transfer your IRA into whichever investments works best for you
What is an IRA?
An IRA is a tax-advantaged retirement account that lets you save for retirement, with either tax-deferred growth (Traditional IRA) or tax-free growth (Roth IRA), depending on the type you choose.
What is the difference between a Traditional IRA and a Roth IRA contribution?
Traditional IRA contributions are tax-deductible, but withdrawals in retirement are taxed, while Roth IRA contributions are made with after-tax money, and withdrawals in retirement are tax-free. Learn more here.
What’s the contribution limit for an IRA?
In 2024, the annual contribution limit for both Roth and traditional IRAs is $7,000 for those under 50, and $8,000 for those 50 and above.
What’s the deadline to contribute to an IRA for the 2025 tax year?
The deadline to contribute to an IRA for the 2025 tax year is April 15, 2026.
What happens if I make a small contribution to my account?
We will invest your contribution at the next available opportunity. Normally this occurs within a day but in the case of smaller contributions it may earn interest while we wait for the next suitable moment.
What does it cost?
There is no fee to contribute to your PensionBee account. Our all-inclusive annual fee of 0.85% of your account balance (billed monthly) covers every aspect of our service, including rollovers, transfers, contributions, investments, and more.
Is there an income limit for IRA contributions? What if I don’t make enough money to reach the contribution limit?
Yes, you cannot contribute more to your IRAs than the income you earn each year. For example, if you earn $5,000, your maximum contribution limit will be $5,000.
Can I contribute to both a Traditional and a Roth IRA in the same year?
Yes, but keep in mind that the total contributions across both accounts cannot exceed the $7,000 ($8,000 if you're 50 or older) limit for the year.
How long can I make IRA contributions?
You can make IRA contributions for a specific year until the tax filing deadline, which is usually April 15th of the following year. If you file for a tax extension, you can contribute until the extended deadline. However, simply filing for an extension doesn’t automatically grant additional time — your filing must be approved in order to extend the contribution deadline.
What happens if I contribute too much to my IRA?
If you contribute more than the allowed limit, you can remove the extra contributions before your tax filing deadline to avoid penalties.
• If the excess is removed before earning any gains, you generally won’t need to report it as income.
• If the excess has earned gains, those gains must be reported on your taxes as income and may be subject to a 10% early withdrawal penalty if you're under age 59½.
• If the excess isn’t removed before the deadline, it may be subject to a 6% penalty for each year it remains in your account.
For more details, visit the IRS website.
Do I have to report my IRA contributions when filing taxes?
• For Traditional IRAs, you must report contributions on your tax return, especially if you're claiming a deduction.
• For Roth IRAs, contributions aren't deductible, but tracking them is recommended for future withdrawals.
For more details, visit the IRS website.
Is there an age limit to contribute to an IRA?
For Traditional IRAs, there’s no longer an age limit for making contributions as long as you have earned income — this includes wages, salaries, tips, or self-employment income. The SECURE Act of 2019 removed the previous age limit of 70½, allowing individuals of any age to keep contributing if they’re still earning.
For Roth IRAs, there’s never been an age limit for contributions. Eligibility requires earned income, which includes wages, salaries, tips, or self-employment income — not passive income like investments, Social Security, or pensions.
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Get Started TodayPensionBee Inc. is registered with the SEC as an investment adviser. We do not provide in-person advice.