What's the Difference Between a Roth IRA and a Traditional IRA?

A Roth IRA and a Traditional IRA are both retirement savings accounts that let your money grow without being taxed along the way, but they differ in when you get the tax benefit. With a Traditional IRA, you can often deduct your contributions from your income today, which lowers your tax bill for the current year. With a Roth IRA, your contributions are made with after-tax dollars, meaning you get no deduction now, but your withdrawals in retirement are completely tax-free. This makes a Roth IRA a better fit if you expect to be in a higher tax bracket when you retire. The right choice depends on your current income, your expected income in retirement, and whether you'd rather save on taxes now or later.