Whether this is an advantage versus a traditional IRA depends on a number of factors. Contribution is deductible from current income thus reducing current income taxes. Contribution is not deductible from current income thus it does not reduce current income taxes. Earnings on investments are not subject to current income taxes. Earnings on investments are not subject to current income taxes.
Qualified withdrawals are subject to income taxes.
Qualified withdrawals are not subject to income taxes. At that time withdrawals can either be spread out over the life expectancy of the participant or taken as a lump sum. There is no maximum age at which withdrawals must begin. The earnings can continue to accumulate tax-free until death. Unqualified early withdrawals.