Comparison Roth vs. Traditional IRAs
	Regular IRA - 2004	Roth IRA
Who’s eligible to invest	Taxpayers under age 701/2 who are still working.	Working taxpayers of any age with adjusted gross income below $110,000 (single) or $160,000 (married, filing jointly)
Tax Advantages	Tax on gains, dividends and interest are deferred until money is withdrawn.	No taxes on investment profits if the account is open at least five years
Deductible contribution?	Yes, for taxpayers who don't have employer-sponsored retirement plan or whose adjusted gross income is below $40,000 (single) or $60,000 (married, filing jointly).	No
Withdrawal penalties	Withdrawals before age 59 1/2 subject to a 10% penalty unless the money is used for a first home or college.	No penalties if the account has been open five years and the taxpayer is at least 59 1/2 or is using the withdrawal to buy a first home
Distribution rules	Investors must start taking money out of the account by age 70 1/2 or face penalties	No requirement to start taking money by 70 1/2