The Difference Between a Traditional and a Roth IRA

A traditional IRA is funded with pre-tax dollars. A Roth IRA is funded by after tax dollars. Any money that you put in a Roth IRA, you can take out at any time without taxes or penalties regardless of your age and how long the money has been in there. If you take money out anytime before the age of 59 and a half, whether it's your contribution or not, any money, you will pay a 10% penalty if you're not59 and a half.