Roth IRAs are similar to traditional IRAs in all of the following ways except:
a. Correct. While there is an age limit for contributions to traditional IRAs, there is no maximum age limit for making contributions to Roth IRAs.
b. Incorrect. If distributions are taken because of disability, there is no penalty for either traditional or Roth IRAs.
c. Incorrect. The same contribution limit ($5,000, or $6,000 for those 50 and older by the end of 2012) applies to traditional IRAs and Roth IRAs.
d. Incorrect. Whether contributing to a traditional IRA or Roth IRA, taxpayers must have earned income.