How Does A Roth IRA Differ From A Traditional IRA?
The significant differences between a traditional IRA and a Roth IRA are: (i) contributions to a Roth IRA are not deductible; (ii) distributions from a Roth IRA may not be included in gross income; (iii) the required minimum distribution rules do not apply to a Roth IRA during the lifetime of the owner; (iv) contributions to a Roth IRA can be made if the owner is older than 70 years of age; and (v) eligibility to contribute to a Roth IRA is subject to special modified income limits. In general, however, in order to avoid income taxation, a distribution from a Roth IRA must be made at least five years after the contribution to the Roth IRA, and be: (i) made on or after the participant/owner reaches age 59; (ii) made after the participant/owners death; (iii) attributable to partial or total disability of the participant/owner; or (iv) used for the purchase of a first home and be less than $10,000. Although no minimum distribution rules apply to the Roth IRA, all the same rules governing
