Reply to Roth IRAs offer a number of potential advantages over Traditional IRAs. Traditional IRAs allow for tax-deferred growth of retirement assets, with ordinary income being due on the taxable amount of the distributions. Distributions of Roth IRA earnings are tax-free, as long as the Roth IRA has been open for more than five years and you are at least age 59 1/2, or as a result of disability or using the first-time homebuyer exception or taken by your beneficiaries due to death. Distributions may be subject to a 10% additional tax if taken prior to age 59 1/2. Other features include: With a Roth IRA, unlike Traditional IRAs, do not have to take required minimum distributions (RMDs) during the participant lifetime. A Roth IRA can be used as an estate planning tool because your beneficiaries can inherit the Roth IRA tax-free. Tax diversification of retirement assets allows for more flexibility to manage taxable income in retirement