An IRA stands for an Individual Retirement Account. Traditional IRAs are potentially deductible, but Roth IRAs are not. The advantage of Roth IRAs is that they are not taxable when withdrawn because you pay your tax now. Please see this FAQ with a broader consideration: https://ttlc.intuit.com/replies/3300134
An IRA stands for an Individual Retirement Account. Traditional IRAs are potentially deductible, but Roth IRAs are not. The advantage of Roth IRAs is that they are not taxable when withdrawn because you pay your tax now. Please see this FAQ with a broader consideration: https://ttlc.intuit.com/replies/3300134
A traditional is a form or IRA where investment earnings are Tax deferred until you withdraw them, typically in retirement, past age 59 1/2. Also, if you are under certain AGI/MAGI income limits, you will also get an immediate income deduction for for the amount you contributed.
A Roth IRA is one in which you do not get an upfront tax deduction, but your investment earnings are tax free for the rest of your life. There are also AGI/MAGI limitations for a Roth, but they are higher than for a deductible traditional IRA
Whether you do a traditional or a Roth, if you have a choice, depends on what your marginal tax rate is now, and what you think it will be in the future, among other things.