Terms of Use: 
The purpose of a Roth IRA is to put away money for retirement. To be a Roth IRA, the account or annuity must be designated as a Roth IRA when it is set up. A deemed IRA can be a Roth IRA, but neither a SEP IRA nor a SIMPLE IRA can be designated as a Roth IRA.
Unlike the Traditional IRA, contributions to the Roth IRA are not tax-deductible. However, any income generated grows tax-free in a Roth IRA.
After funds have been in a Roth IRA for five years, you can make tax-free withdrawals after age 59-1/2. Early withdrawals, or distributions, from a Roth IRA are normally subject to a 10% additional tax penalty. Funds may be withdrawn without penalty for certain circumstances such as the purchase of a first home, pay for higher education, or for disabilities. With a Traditional IRA, an individual must make mandatory withdrawals after reaching age 70-1/2. With a Roth IRA, you don't have to make mandatory withdrawals.
If you satisfy the requirements, qualified distributions are tax free. Contributions can be made to your Roth IRA after you reach age 70½ and you can leave amounts in your Roth IRA as long as you live.
