Ally Bank Compare IRAs

Products
Plans

Find the best IRA plan with the right features for your retirement. Before you decide on the plan for you, it's always best to consult with your tax professional. The IRA comparison information we're providing is not tax advice.

Roth IRA

Traditional IRA

SEP IRA

Consider if

You're interested in both tax-free growth and withdrawals. Roth IRA contributions are not tax-deductible.

You prefer your money to grow tax-deferred until you withdraw it in retirement. In many cases, your contributions are tax-deductible in the year they are made.

You're a business owner or self-employed
You're an employee of a business with a SEP IRA

Contribution Eligibility

Any age with taxable compensation

Any age with taxable compensation.

Anyone whose employer invites them to participate in a SEP. Please note that employees cannot make personal contributions to a SEP IRA.

Maximum Contribution Limits

Contribution Limits for 2020:

$6,000 if under age 50
$7,000 if age 50 or older

These contribution limits apply to Single filers with income of $124,000 or less or Joint filers with income of $196,000 or less.

As income levels increase above these limits, tax deductions for eligible contributions may be reduced. Consult with your tax professional.

Contribution Limits for 2020:

$6,000 if under age 50
$7,000 if age 50 or older

Income levels do not affect contribution limits for Traditional IRAs; however, your income may affect the amount you can deduct.

Contribution Limits for 2020:

Employer contributions that are lesser of 25% of employee's compensation, or $57,000.
For self-employed individuals the limit is generally 20% of net earnings.

Contribution Limits for 2019:
- $6,000 if under age 50
- $7,000 if age 50 or older
These contribution limits apply to Single filers with income of $122,000 or less or Joint filers with income of $193,000 or less.

As income levels increase above these limits, tax deductions for eligible contributions may be reduced. Consult with your tax professional.
Contribution Limits for 2019:
- $6,000 if under age 50
- $7,000 if age 50 or older
Income levels do not affect contribution limits for Traditional IRAs; however, your income may affect the amount you can deduct.
Contribution Limits for 2019:
- Employer contributions that are lesser of 25% of employee's compensation, or $56,000.
- For self-employed individuals the limit is generally 20% of net earnings.

Tax deductions

Contributions are not deductible

Depends on:

Your earnings
Whether you participate in an employer's retirement plan
Your filing status
If you receive Social Security Benefits

If employer contributions exceed certain limits, employees can't deduct their employer's contribution to their SEP plan. If you are self-employed, you can generally deduct the contributions you make each year to your own SEP IRA.

Tax advantages

Tax-free when you take distributions

Pay no taxes until you take distributions

Distributions

Distribution of an original contribution is always tax and penalty free.
Any earnings and conversion dollars (from other retirement plans) are tax free after the IRS' 5 year aging requirement has been met AND you are 59½ or older; otherwise, you could incur a 10% penalty.

Taxable
Could include a 10% penalty if made before age 59½

Required minimum distributions

Not required

Mandatory at age 72. This change will affect IRA owners that reach the age of 70 ½ after 2019. Any IRA owner that was subject to the Required Minimum Distribution (RMD) for 2019 and years prior will continue to have an RMD for 2020 and beyond.

Due to the recent stimulus package approved by Congress (the CARES Act), you are not required to take your 2020 RMD. If you have previously requested this distribution from Ally for 2020, you must contact us to waive your distribution for 2020. You can send a Secure Message or call us.

If you already received your 2020 RMD you may be able to return it to your IRA account as an indirect rollover. If your distribution occurred on February 1 through and up to May 15 you have until July 15 to rollover your RMD. After May 15, you would only have 60 days from when you received the distribution to rollover your funds. You can only rollover your funds if you have not had a rollover in the last rolling 12 months. We recommend that you consult your tax professional on this transaction and then contact us for next steps.

Annual deadline for contributions

The IRS has extended the 2019 tax filing deadline to July 15, 2020, which means you may make prior year contributions up until that date. In order to make a Prior Year Contribution please download the Contribution Form (pdf) and return to us via Secure Message. Be sure to mark the form that you would like the contribution to be a Prior Year Contribution.

The employer's deadline for filing its annual tax return, including any extensions.

Find the best IRA plan with the right features for your retirement. Before you decide on the plan for you, it's always best to consult with your tax professional. The IRA comparison information we're providing is not tax advice.

You're interested in both tax-free growth and withdrawals. Roth IRA contributions are not tax-deductible.

You prefer your money to grow tax-deferred until you withdraw it in retirement. In many cases, your contributions are tax-deductible in the year they are made.

You're a business owner or self-employed
You're an employee of a business with a SEP IRA

Any age with taxable compensation

Anyone whose employer invites them to participate in a SEP. Please note that employees cannot make personal contributions to a SEP IRA.

Contribution Limits for 2020:

$6,000 if under age 50
$7,000 if age 50 or older

These contribution limits apply to Single filers with income of $124,000 or less or Joint filers with income of $196,000 or less.

As income levels increase above these limits, tax deductions for eligible contributions may be reduced. Consult with your tax professional.

- $6,000 if under age 50
- $7,000 if age 50 or older
These contribution limits apply to Single filers with income of $122,000 or less or Joint filers with income of $193,000 or less.

As income levels increase above these limits, tax deductions for eligible contributions may be reduced. Consult with your tax professional.

Contribution Limits for 2020:

$6,000 if under age 50
$7,000 if age 50 or older

Income levels do not affect contribution limits for Traditional IRAs; however, your income may affect the amount you can deduct.

- $6,000 if under age 50
- $7,000 if age 50 or older
Income levels do not affect contribution limits for Traditional IRAs; however, your income may affect the amount you can deduct.

Contribution Limits for 2020:

Employer contributions that are lesser of 25% of employee's compensation, or $57,000.
For self-employed individuals the limit is generally 20% of net earnings.

- Employer contributions that are lesser of 25% of employee's compensation, or $56,000.
- For self-employed individuals the limit is generally 20% of net earnings.

Contributions are not deductible

Depends on:

Your earnings
Whether you participate in an employer's retirement plan
Your filing status
If you receive Social Security Benefits

If employer contributions exceed certain limits, employees can't deduct their employer's contribution to their SEP plan. If you are self-employed, you can generally deduct the contributions you make each year to your own SEP IRA.

Tax-free when you take distributions

Pay no taxes until you take distributions

Distribution of an original contribution is always tax and penalty free.
Any earnings and conversion dollars (from other retirement plans) are tax free after the IRS' 5 year aging requirement has been met AND you are 59½ or older; otherwise, you could incur a 10% penalty.

Taxable
Could include a 10% penalty if made before age 59½

Taxable
Could include a 10% penalty if made before age 59½