Choose the IRA type that
works best for you.
Here’s a breakdown to help you decide
| Objectives | Traditional IRA | Roth IRA |
|---|---|---|
| Tax treatment | Tax deduction now, taxes due on withdrawal | No deduction now, no taxes due on withdrawal |
| Contribution limits | $7,000 ($8,000 if 50+) | $7,000 ($8,000 if 50+) |
| Income limits | No limits for contributions, but deduction phases out at higher incomes | Contribution limits based on income |
| Required minimum distributions (RMDs) | Yes, starting at age 73 | No RMDs |
| Withdrawal rules | Penalty for early withdrawal before 59½ (some exceptions apply) | Contributions can be withdrawn anytime; earnings after 59½ |
Why setting up an Individual IRA
is important
An Individual Retirement Account (IRA) isn’t just another savings option—it’s your ticket to a worry-free retirement. Whether you’re dreaming of beachside sunsets or more time with family, an IRA empowers you to save smarter with tax advantages you won’t find in a regular savings account.
Tax benefits
Traditional IRAs offer tax-deferred growth, while Roth IRAs provide tax-free withdrawals in retirement.
Compound growth
The earlier you invest, the more time your money has to grow.
Financial security
An IRA ensures you have funds for retirement, reducing dependence on Social Security.
Simple setup & management
No complex paperwork or ongoing administrative burdens—just a straightforward way to save.
Over 40% of U.S. households own an IRA, collectively holding an impressive $11 trillion in assets. With an average balance of $120,000, IRAs demonstrate strong long-term growth potential. Traditional IRA contributors can reduce their taxable income by up to $7,000 annually, offering significant tax advantages.
A smarter, simpler way to build your financial future
- Hassle-free account setupWith WealthRabbit, you can open your IRA in minutes—completely online and stress-free.
- Investment portfolio that work for you Choose from professionally curated investment portfolios that align with your financial goals.
- Seamless rolloversRoll over your existing IRA into WealthRabbit and manage your retirement savings in one place.
- Quick & actionable insightsTrack your IRA growth with real-time updates on contributions, investments, and overall progress.
- Automated contributionsMake contributions on your schedule—monthly, quarterly, or annually. You’re always in control.
Start planning today with free IRA accounts for individuals
Traditional IRA
FREE
Roth IRA
FREE
All plans include:
- Full digital setup throughout the sign-up process
- Payroll integration
- Fund transfers from existing retirement plans
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Frequently asked questions
You can contribute the full amount to a Roth IRA in 2025 if your modified adjusted gross income (MAGI) is:
- Less than $146,000 for single filers
- Less than $230,000 for married couples filing jointly
If your income is above these thresholds, your allowed contribution will gradually phase out.
- Traditional IRA: You can start penalty-free withdrawals at age 59½, but withdrawals are subject to income tax.
- Roth IRA: You can withdraw your contributions anytime, tax and penalty-free. To withdraw earnings tax-free, your account must be at least 5 years old, and you must be 59½ or older.
Yes, you can open multiple IRAs (Traditional and Roth). However, your total annual contribution limit applies across all accounts combined. For 2025, that limit is $7,000 (or $8,000 if you’re 50 or older).
Excess contributions may incur a 6% penalty each year until corrected. To avoid penalties, withdraw the excess amount plus any earnings before your tax filing deadline.
Retirement planning that supports your success
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