Another difference between the two is that Traditional IRAs require holders to withdrawal money at 70 1/2 (but can begin taking money as early as 59 1/2). Roths have no such mandatory withdrawal age.
Roth IRA Profile
- Contributions are not tax deductible
- No Mandatory Distribution Age
- All earnings and principal are 100% tax free if rules and regulations are followed
- Funds can be used to purchase a variety of investments (stocks, bonds, certificates of deposits, etc.)
- Available only to single-filers making up to $95,000 or married couples making a combined maximum of $150,000 annually.
- Principal contributions can be withdrawn any time without penalty (subject to some minimal conditions)