Maximum annual contribution = $5,000 in 2010, $6,000 in 2010 for those reaching age 50 by December 31, 2010 for 2010 tax filing

Maximum annual contribution = $5,000 in 2010, $6,000 in 2010 for those reaching age 50 by December 31, 2010

If neither you nor your spouse is covered by a pension plan, the IRA contribution is fully deductible. If you or your spouse is covered by a pension plan, the IRA contribution deduction may be limited or completely phased-out.

Contributions are not deductible.

Anyone can establish a traditional IRA.

In order to establish a Roth IRA, your 2010 modified adjusted gross income cannot exceed $120,000 if filing as a single or $177,000 if filing a joint return.

Contributions and earnings grow tax-deferred until withdrawal.

Contributions and earnings grow tax-free and withdrawals are tax-free, provided the IRA is held for at least five years and withdrawals begin after age 59½ or are due to death, disability, or for "first-time home buyers" subject to a $10,000 limit.

Contributions are not allowed after age 70½.

Contributions are allowed after age 70½, provided you have earned income.

Withdrawals must begin at age 70½.

Withdrawals do not have to begin at age 70½.

Penalty-free withdrawals can be made for a qualifying first-time home purchase, subject to a $10,000 lifetime limit.

Provided the IRA is held for at least five years, penalty-free, tax-free withdrawals can be made for a qualified first-time home purchase, subject to a $10,000 lifetime limit.

Penalty-free withdrawals can be made for higher education expenses of the taxpayer, spouse, children, or grandchildren.

Penalty-free withdrawals can be made for higher education expenses of the taxpayer, spouse, children, or grandchildren.