As a result of the Taxpayer Relief Act of 1997, while the traditional tax-deferred IRA has been enhanced, a new tax-free IRA has been created. These changes went into effect for 1998 tax year contributions.

Traditional IRA
 

Eligibility Requirements: Tax Advantage: Withdrawals:     Contributions:	Under age 70 1/2 with compensation, including a non-working spouse. Tax-deferred growth Subject to tax and possible penalties     Tax deductible, subject to AGI limits
Roth IRA Eligibility Requirements: Tax Advantage:     Withdrawals:     Contributions:	Any age with compensation, including a non-working spouse, subject to income limits; Single: $110,000; Married: $160,000 Tax-free Growth     Contribution Withdrawals and qualified distributions of earnings are tax-free. Not Tax deductible.