Traditional IRAs are a pretax savings vehicle.
Account contributions may be deductible from the owner's income tax and any income and capital growth that occurs within the account is not taxed until distribution. The required minimum distribution is based upon the life expectancies of the owner and any designated beneficiary. One primary disadvantage of the Roth IRA is that contributions to it are never deductible, while contributions to a traditional IRA may be deducted from the account owner's taxable income. Funding and Distributing Roth Contributions. A person's ability to contribute to a Roth IRA is phased out if his adjusted gross income exceeds certain levels.