1.2.2.10.3.2 Roth IRA
The primary difference between a Roth IRA and a traditional IRA is that an individual cannot deduct contributions to a Roth IRA when calculating income tax. In other words, the contributions are made with after-tax dollars. The big advantage of a Roth IRA is that participants do not have to pay income taxes on the earnings made in the account, and contributions can be withdrawn tax-free and without penalty at any time. In addition, there are no required distributions (withdrawals) from a Roth IRA during the owner’s lifetime.
Earnings can be withdrawn tax-free if the money has been in the Roth IRA for at least five years and the taxpayer is 59 1/2 years or older. Earnings that do not meet t