What is a Roth IRA? A Roth IRA is an individual retirement plan that, except asexplained in this chapter, is subject to the rules that apply to atraditional IRA (defined below). It can be either an account or anannuity. Individual retirement accounts and annuities are described inchapter 1under Hoteles motel baratos HusavikWhen and How Can a Traditional IRA Be SetUp?. To be a Roth IRA, the account or annuity must be designated as aRoth IRA when it is set up. Neither a SEP-IRA nor a SIMPLE IRA can bedesignated as a Roth IRA. cheap hotels in HagueUnlike a traditional IRA, you cannot deduct contributions to a RothIRA. But, if you satisfy the requirements, qualified distributions(discussed later) are tax free. Contributions can be made to your RothIRA after you reach age 70 1/2 and you can leave amountsin your Roth IRA as long as you live. Traditional IRA.A traditional IRA is any IRA that is not a Roth IRA, SIMPLE IRA, oreducation IRA. Traditional IRAs are discussed in chapter 1.