Roth IRA's give you the ability to invest your after tax dollars today, let the investment grow, tax deferred, and withdraw your principal and earnings tax-free after five years. Contributions may be withdrawn tax-free at any time for any reason. Once an owner begins withdrawing earnings, qualified distributions from the Roth IRA are tax free. Owners death 2.
Owner uses funds for first time home purchase.
Traditional IRA income limits have been increased for deductible contributions making more people eligible. There are income limits on both IRA's.