The key difference between a Traditional and Roth IRA lies in how they are taxed.
With a Traditional IRA, contributions may be tax-deductible, and your investments grow tax-deferred. You pay taxes when you withdraw funds in retirement.
With a Roth IRA, contributions are made with after-tax dollars, but qualified withdrawals—including earnings—are completely tax-free.
Choosing between the two depends on your current tax situation and long-term financial goals.