The Roth IRA is an important retirement savings vehicle for many Americans. Compared to a traditional IRA, the Roth IRA's main differences are:

- Contributions to a Roth IRA are not tax deductible like a traditional IRA.
- Assuming all conditions are met, money withdrawn from your Roth IRA account during retirment is not taxed - it is completely tax free
- With a Roth IRA, there is no requirement to take minimum distributions after hitting age 70 1/2.