IRA Comparison Chart

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The following comparison table can assist you in determining which IRA may be most appropriate for you. You may also want to speak with an HSBC Securities Financial Advisor that can help you in developing a financial plan to help meet your retirement goals.

	Traditional IRA	Roth IRA
Eligibility	You must have earned income and be under age 70 ½ in the year the contribution is made.	No age limit, however you must have a modified adjusted gross income (MAGI) below $110,000 if single or $160,000 if married and filing jointly.
Maximum Annual Contribution	Individual: $4,000 Married filing jointly: $8,000 (up to $4,000 each)	Individual: $4,000 Married filing jointly: $8,000 (up to $4,000 each)
Catch up contribution	If you are age 50 or older in the year of contribution, eligible IRA holders can make an additional contribution of $1,000.	If you are age 50 or older in the year of contribution, eligible IRA holders can make an additional contribution of $1,000.
Contribution – Tax Deductibility	If you are not an active participant in an employer sponsored retirement plan, such as a 401(k), your entire contribution is tax deductible. If you are an active participant in an employer sponsored retirement plan, your contribution may be completely or partially deductible. See Traditional IRA for details.	Contributions are not tax deductible.
Tax-Deferred Earnings	Earnings are tax-deferred	Earnings are tax free
Age for Required Distributions	Distributions must begin by April 1 of the year after turning age 70 ½.	There is no mandatory age for taking distributions.
Withdrawals	After age 59 ½, withdrawals are not subject to federal tax penalties. Withdrawals may be subject to federal and state income taxes. Withdrawals prior to age 59 ½ may be subject to federal and state income taxes, plus a 10% federal tax penalty may apply unless you meet the Qualified Early Withdrawal requirements as stated in the section below.	Contributions can be withdrawn at any time without penalty. Premature withdrawals may be subject to federal and states taxes plus a 10% federal tax penalty. See Qualified Early Withdrawal exceptions as stated in the section below.
Qualified Early Withdrawals	You can begin taking withdrawals without any penalties when you reach age 59 ½. In addition, penalty free withdrawals are allowed if: You are a first-time homebuyer ($10,000 lifetime limit). You are using the withdrawal to pay for certain higher education expenses. Certain conditions are met for unemployment or qualifying medical expenses. The distribution was a result of disability or death.	You have the ability to withdraw your principal and earnings completely tax-free if the IRA has been open for 5 or more years and at least one of the following conditions are met: You are age 59 ½ or older when you make the withdrawal. You are a first-time homebuyer ($10,000 lifetime limit). You are disabled when you make the withdrawal. Withdrawals are made by your beneficiary after you die.

For more information on which IRA may be most appropriate for you or to discuss other retirement planning alternatives, you can contact one of our HSBC Securities Financial Advisor at 1-800-662-3343 or visit your local HSBC branch.

Securities and annuities are provided by Registered Representatives and Insurance Agents of HSBC Securities (USA) Inc., member NYSE/FINRA/SIPC, registered Futures Commission Merchant, a wholly-owned subsidiary of HSBC Markets (USA) Inc. and an indirectly wholly-owned subsidiary of HSBC Holdings plc.

Insurance products are offered through Insurance Agents of HSBC Insurance Agency (USA) Inc., a wholly-owned subsidiary of HSBC Bank USA, N.A., an affiliate of HSBC National Bank USA, and an indirectly wholly-owned subsidiary of HSBC Holdings plc. Products and services may vary by state and are not available in all states.

Securities, Annuities and Insurance Products are:

NOT A BANK DEPOSIT OR OBLIGATION OF THE BANK OR ANY OF ITS AFFILIATES

NOT FDIC-INSURED

NOT INSURED BY ANY FEDERAL GOVERNMENT AGENCY

NOT GUARANTEED BY THE BANK OR ANY OF ITS AFFILIATES

MAY LOSE VALUE

HSBC Securities (USA) Inc. or any other member of the HSBC Group may from time to time underwrite, perform or seek to perform investment banking services for issuers or make a market or otherwise buy or sell as principal securities or other instruments, or together with the issuers directors, officers and employees may have either a long or short position in securities, commodities, currencies or other instruments or futures or options contracts convertible into securities or other instruments.

All decisions regarding the tax implications of your investment(s) should be made in connection with your independent tax advisor.