<human>:  What are the differences between traditional and Roth IRAs?
<bot>: The main difference between traditional and Roth IRAs is the timing of the associated tax benefits. With a Traditional IRA, contributions are typically made with pre-tax money and the resulting taxes are deferred until the withdrawals are taken in retirement. With a Roth IRA, contributions are made with after-tax money, meaning no taxes are due at the time of withdrawal during retirement. 2 Another difference is that traditional IRAs have income-based restrictions on contributions, but Roth IRAs do not. Therefore, certain individuals may not be eligible to contribute to a traditional IRA, but can contribute to a Roth IRA.3 Traditional IRAs also have mandatory distributions beginning at age 72, but Roth IRAs have no such requirement. For Roth IRAs, the account owner can choose when they want to withdraw funds. 4 Lastly, Traditional IRAs may not offer the same level of portability as a Roth IRA. If you need to access your money before retirement, you may be subject to early withdrawal penalties. With a Roth IRA, you have the flexibility to withdraw your contributions at any time without being subject to additional taxes or fees.