Is Roth IRA Same As Traditional IRA? 
A Roth IRA -LRB- Individual Retirement Arrangement -RRB- is a retirement plan that is generally not taxed provided certain conditions are met . If you satisfy the requirements , qualified distributions are tax free . Here are the basic rules of a Roth IRA : No age restrictions for contribution or distribution Maximum income allowed for 2014 to participate is $ 129,000 single and the head of household , $ 191,000 joint filers Earned income must be or greater than your Roth IRA contributions Tax free growth you pay no taxes when you make qualified withdrawals after age 59 and your account has been open at least five years Maximum contribution $ 5500 -LRB- $ 6500 if you are 50 or older -RRB- Heres how the Traditional IRA works : You must be under age 70 to contribute No maximum income restriction on eligibility to contribute Earned income must be greater than your annual Traditional IRA contributions Tax deferred growth Maximum contribution $ 5500 -LRB- $ 6500 if you are 50 or older -RRB- Your deduction may be limited if you or your spouse are covered by a retirement plan at work and your income exceeds certain levels Required Minimum Distributions -LRB- RMDs -RRB- must start by April 1 of the year following the calendar year in which you reach age 70 An advantage of Roth IRAs is the tax free distribution during retirement . One of the selling points of a Traditional IRA has been you defer the taxes . However , an often overlooked important detail is that in addition to deferring the taxes , you also defer the tax calculation . Who really knows what your specific tax rate will be during retirement ? You will likely not have the same deductions you had when you contributed to an IRA such as dependents and a mortgage . Then there is the general question of do you think taxes are going up or down in the future ? There could be a great advantage to having a Roth IRA if you can handle paying the taxes on the money upfront when you put it into the Roth account . Theres something about the comfort of a stream of retirement income that is tax free that makes it very attractive . Based on the small number of companies that offer pension plans , people largely find themselves on their own when it comes to preparing for retirement . Both the Traditional IRA and the Roth IRA can be helpful retirement income vehicles . As always , you need to consult with a qualified financial person that can make sure your individual situation and needs are taken into consideration when determining which is most appropriate for you . 