When the money you contribute to an IRA is taken from your paycheck is a major difference between a roth and a traditional IRA. For a roth IRA the money will be taken after taxes are taken out. This means that the money you contribute is already taxed and you will not have to pay taxes on it again.

The traditional IRA is taxed before state and federal taxes are taken out. This means that you must pay taxes on the money you put in when you take it out of the IRA. The traditional IRA is taxed later when you take it out, but if you can't pay the taxes now or you think you will be in a lower tax bracket after retirement than you are now, the traditional is a good choice.

Whether or not the contributions can be tax deductible is another difference between a roth and traditional IRA. With a roth IRA, the contributions you make are never tax deductible. On the other hand the traditional IRA can be deductible if you meet the requirements. Some of the requirements are, your tax-filling status, married, single etc. Whether or not you are actively contributing to your traditional IRA and your modified adjusted growth income. These three determining factors will determine if you can deduct the contributions made.

A difference between a roth and Traditional IRA is the income you currently have. For a roth IRA you can't earn more than $160,000 if filling jointly. If you are filing single or separately you can have an income no more that $110,000. For a traditional IRA, there is no limit on the income you make, you can always contribute, no matter how much you make.

How long you want to contribute is a difference that you may need to consider. With the roth IRA you can contribute at any age. There is no age limit, like the traditional IRA. With the traditional IRA you cannot contribute after you are 70 and a half years of age. You don't have to with draw all the IRA funds at this age, but you can't contribute after 70 and a half.

What the Required Minimum Deduction (RMD) is a difference between a roth and a traditional Ira that many may not realize. With a roth IRA, there are no RMD rules that need to be followed. With a traditional IRA, you must begin taking your RMD by the age of 70 and a half. You will actually start taking out funds on April 1 after you turn 70 and a half. Then the amount that you will be required to take out is determined by how much you made, how long of a time period you will be withdrawing the money, and the fair-end market value of the traditional IRA.

So whether you decide to contribute to a roth or a traditional IRA will depend on the difference between the two and what you circumstances are. Keep in mind that the difference between a roth and a traditional IRA are, how the money is taxed when taken out and what, if any the tax deductions are for contributions made. Some other differences between a roth and a traditional IRA are your income, and your age eligibility and when you will be required to take money out of the IRA.