A traditional IRA is a tax-deferred retirement savings account, meaning contributions are made with pre-tax dollars, and taxes are paid when funds are withdrawn in retirement. On the other hand, a Roth IRA is funded with after-tax dollars, but qualified withdrawals are tax-free in retirement. Traditional IRAs require account holders to start taking required minimum distributions (RMDs) at age 72, while Roth IRAs do not have a required minimum distribution age. Additionally, there are income eligibility limits for contributing to a Roth IRA.