What is the difference between a ROTH IRA and a traditional IRA? You don't have to pay taxes on the money you invest in a ROTH IRA, but you do pay taxes when you withdraw the money. You pay taxes on the money you invest in a ROTH IRA when you invest, but you don't need to pay taxes when you withdraw the money. O Any interest you earn on a ROTH IRA is taxed at half of the normal rate. O A traditional IRA is only for full-time employees