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Your must begin taking distributions from your IRA at age 70 �. These distributions are referred to as Required Minimum Distributions. The amount you take out each year is calculated using the balance of your IRA on Dec. 31 of the previous year and dividing it by an age-based divisor that can be found on the IRS website. ROTH IRAROTH IRAs came into existence in the late 1990s. The contribution limits of the ROTH IRA are the same as the Traditional IRA. In 2014, you can make a contribution of $5,500 (plus an additional $1,000 if you are age 50 or older) if you meet the contribution requirements. You are eligible to make a full ROTH IRA contribution if your AGI is less than $181,000 and are eligible to make a partial ROTH IRA contribution if your AGI is between $181,000 and $191,000. Unlike Traditional IRAs, there are no rules pertaining to whether or not you are covered by an employer sponsored retirement plan.Page 2 of 2 - ROTH IRA contributions are not tax-deductible. Instead, the money that you contribute to a ROTH is taxable in the year it is earned, but the contribution will then be allowed to grow and compound tax free. Distributions from a ROTH IRA (assuming they meet requirements) are not taxable. Direct contributions you make to a ROTH IRA may be withdrawn tax free and penalty free at any time. However, earnings within a ROTH IRA may only be withdrawn tax free and penalty free after five years and having reached the age of 59 �. If those requirements are not met then earnings will be taxed and incur a 10 percent penalty. Unlike Traditional IRAs, there are no rules for when you need to start taking distributions from a ROTH IRA. How do you decide which type of IRA is right for you? For starters, you want to think about your own tax situation. If you are currently in a low tax bracket and anticipate that you may be in a higher tax bracket in your retirement years, then a ROTH IRA makes sense. 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