<human>:  What are the key differences between a Roth IRA and a traditional IRA?
<bot>: The key differences between a Roth IRA and a traditional IRA are the rules for contributions, tax benefits and distributions. Contributions to a Roth IRA are made with after-tax dollars, meaning that the contribution amount is not tax-deductible. Contributions to a traditional IRA are typically made with pre-tax dollars and are tax-deductible. Tax benefits of a Roth IRA are different than a traditional IRA; with a Roth IRA, the earnings grow and withdrawals are generally tax-free whereas with a traditional IRA, the contributions are deductible, but the earnings are taxed upon withdrawal. Lastly, the rules for distributions differ between a Roth IRA and a traditional IRA. With a Roth IRA, qualified distributions can be taken free of taxes and penalties, whereas with a traditional IRA, before age 59 ½, distributions incur a 10% penalty.