While the money is taxed when withdrawn, often owners are in a lower tax bracket at that point in their life. Fewer income restrictions: Unlike a Roth IRA, there is no income limitation to contribute to a Traditional IRA. The only requirement to contribute is that you have earned income. ...
Another difference between traditional and Roth IRAs lies in withdrawals. With traditional IRAs, you have to take RMDs, which are mandatory, taxable withdrawals of a percentage of your funds—even if you don't need the money. These must start at the age of 73 for account owners born between...