The difference is when you pay tax. Roth IRA contributions aren't deductible, but qualified withdrawals are tax-free; traditional IRA contributions may be deductible, and the money is taxed when you take it out. As of Nov 2026, the IRS says traditional IRA owners generally must start required withdrawals at 73, while Roth IRA owners face none during their lifetime.
Both accounts are individual retirement arrangements in the US, and the IRS treats a Roth IRA as a traditional IRA with a handful of rule changes. Those changes are the whole story. This page sets out what the Internal Revenue Service says on its Roth IRA, traditional IRA and required minimum distribution pages, in plain English, so you know which questions to take to your tax adviser.
Roth IRA and traditional IRA side by side
| Roth IRA | Traditional IRA | |
|---|---|---|
| Tax when you put money in | Contributions can't be deducted | Contributions may be fully or partially deductible, depending on filing status and income |
| Tax when you take money out | Qualified distributions are tax-free if you meet the requirements | Amounts, including earnings and gains, are generally taxed when withdrawn |
| Income rules | Contributions can be limited by filing status and modified AGI | The deduction can be limited by filing status and income |
| Required withdrawals in your lifetime | None while you're alive | Generally from age 73, even if you're retired |
| Contribution limit | One combined limit across all your Roth and traditional IRAs | Shares that one combined limit |
| After your death | Beneficiaries are subject to RMD rules | Beneficiaries are subject to RMD rules too, including the 10-year rule |
| Opening it | Must be designated a Roth IRA when it's set up | Set up as an ordinary IRA |
Tax now or tax later
A traditional IRA gives you the tax break at the start. The IRS says contributions may be fully or partially deductible depending on your filing status and income, and that amounts in the account, including earnings and gains, generally aren't taxed until you take a distribution. When the money comes out, it's taxed as income, except any part that was already taxed, which the IRS calls your basis.
A Roth IRA flips that order. You can't deduct what you put in, but if you satisfy the requirements, qualified distributions are tax-free. That's why the choice usually comes down to a guess about your tax position now compared with your tax position in retirement, and it's a guess only you and an adviser can make with your real numbers.
Required withdrawals only apply to one of them
Here's the rule that surprises people. The Internal Revenue Service says required minimum distributions, the minimum amounts you must withdraw each year, generally start at age 73 for traditional, SEP and SIMPLE IRAs. Roth IRAs don't have them while the owner is alive: the IRS says you can leave amounts in your Roth IRA as long as you live.
The catch is what happens after. The IRS is clear that beneficiaries of Roth IRAs are subject to RMD rules. For owners who die after December 31, 2019, the whole account generally has to be paid out within ten years, with exceptions for a surviving spouse, a child who hasn't reached the age of majority, a disabled or chronically ill person, or someone not more than ten years younger than the owner.
How the first RMD works and what missing one means
- Your first RMD is for the year you reach 73, but you can delay it until April 1 of the following year. The IRS example: reach 73 in 2024, take the first by April 1, 2025 and the second by December 31, 2025.
- Each RMD is worked out by dividing the account's balance on the prior December 31 by a life expectancy factor from the IRS tables in Publication 590-B.
- If you own several IRAs, you calculate each RMD separately but can take the total from one or more of them.
- Your IRA custodian may calculate the amount, but the IRS says you're ultimately responsible for taking the right one. You can always withdraw more than the minimum.
- Miss it and the amount not withdrawn may face an excise tax of 25%, or 10% if you correct it within two years. You report it on Form 5329, and the IRS may waive the penalty for a reasonable error you're putting right.
Two more details from the IRS FAQ: taking extra one year doesn't count towards a future year's RMD, and RMD amounts can't be rolled over into another tax-deferred account.
Rules both accounts share
The IRS says the same combined contribution limit applies to all of your Roth and traditional IRAs, so opening one of each doesn't double what you can put away. Your Roth IRA contribution might also be limited based on your filing status and income. Publication 590-A covers setting up and contributing, and Publication 590-B covers withdrawals, including a side-by-side comparison of the two account types. If you're self-employed, my notes on tax tips for the self-employed and how much you can earn on a side hustle before tax are a useful next read.
My advice on picking a Roth or traditional IRA
It depends on when you'd rather pay the tax and how much flexibility you want later. A traditional IRA suits someone who values a deduction now and expects to draw the money in retirement, accepting RMDs from 73. A Roth IRA suits someone happy to pay tax up front for tax-free qualified withdrawals and no lifetime RMDs. These are the rules as the Internal Revenue Service publishes them, as of Nov 2026, and they aren't personal advice: check the current limits for your income with a qualified tax professional before you choose.
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Frequently asked questions
Is it possible to hold both a Roth IRA and a traditional IRA?
Yes. The IRS says the same combined contribution limit applies to all of your Roth and traditional IRAs, so the total across both counts towards one limit.
Do Roth IRAs have required minimum distributions?
Not while the owner is alive. The IRS says RMD rules don't apply to Roth IRAs during the owner's lifetime, but they do apply to beneficiaries after the owner's death.
When do RMDs start for a traditional IRA?
Generally at age 73. You can delay the first one until April 1 of the year after you reach 73, but then you'll take two in that year.
What happens if I miss an RMD?
The IRS says the amount not withdrawn may be subject to a 25% excise tax, cut to 10% if it's corrected within two years. You file Form 5329, and the penalty may be waived for reasonable error.
Can I still contribute to a Roth IRA after 70 and a half?
Yes. The IRS says you can make contributions to your Roth IRA after you reach age 70 and a half, subject to the usual income-based limits.
Are traditional IRA contributions always deductible?
No. The IRS says they may be fully or partially deductible, depending on your filing status and income.
