Tax credit available for eligible taxpayers (for tax years through 2006 only).

Earnings grow tax-deferred.

Penalty-free withdrawals allowed for first-home purchase‚ higher education‚ death‚ disability and certain medical and health insurance bills.

Earnings are taxed as income upon withdrawal.

Withdrawals are calculated pro rata for tax-paid and tax-due portions‚ which means you cannot take an early withdrawal without incurring taxes and possible penalties.

Distributions must begin after age 70-1/2.

Contributions cannot continue after age 70-1/2.

Tax credit available for eligible taxpayers.

Earnings grow tax-deferred.

Penalty-free withdrawals (same as nondeductible IRA).

Early withdrawals incur a penalty tax if no exception applies.

Contributions cannot be deducted if AGI is too high.

Belonging to company retirement plan is a factor.

Distributions must begin after age 70-1/2.

The retirement tax rate is expected to be substantially lower and you have a few years before retirement.

The immediate benefit of the tax-deductible contribution is needed.

Earnings grow tax-deferred.

Qualified withdrawals are tax-free.

Withdrawals are taken first from contributions‚ so contributions can be withdrawn at any time tax- and penalty-free‚ except converted amounts‚ which must be held at least five years to avoid a 10% early withdrawal penalty.

Penalty-free withdrawals (same as for traditional IRA).

Tax-free withdrawals (after five years) for a first-home purchase.

Age 70-1/2 is not a factor for contributions or withdrawals.

Converted amounts must be held a minimum of five years to avoid a penalty.

Contributions cannot be made if AGI is too high.

Contribution is not deductible on tax return.