How does the traditional IRA differ from a Roth individual retirement account?
With a traditional individual retirement account, you make contributions before taxes are paid on the income. As a result, you will have less taxable income, and this is one of the near-term benefits.
Once you reach the age of 59.5, you are allowed to take penalty-free withdrawals from the account. Any distributions that you accept from the account would be subject to regular taxes, because there were no taxes paid previously. You are required to take mandatory minimum distributions (MMDs) when you are 70.5 years old.
Contributions are made into a Roth IRA after taxes have been paid on the income. There is the same arrangement in place with regard to your ability to take withdrawals without being penalized when you are 59.5 years of age. If and when you do accept distributions, they would not be subject to taxation.
Plus, you are never required to take mandatory minimum distributions, because the concept exists so that the IRS can eventually start to get some money. Since you already paid your taxes, this is not a factor when you have a Roth individual retirement account.