Logically (though the government doesn't always see things this way), you're still in an IRA, just with different withdrawal requirement dates. If you withdrew and amount out either IRA as cash then it would be taxable. The purpose of choosing either a Traditional or ROTH IRA is for when you anticipate the time you will start to withdraw funds. If you intend to work late into your sixties you would select a ROTH starting withdrawals at 70 1/2 when your income is anticipated to be lower. Traditional would allow withdrawal a 59 1/2 when you might decide to work less therefore lowering your income. The whole idea in to pay minimum tax on retirement funds.
