With a Roth IRA, you contribute money after taxes, your money grows tax-free, and you can generally make tax-free and penalty-free withdrawals after age 59 and a half. With a traditional IRA, you contribute money before or after taxes, your money grows with deferred taxes, and withdrawals are taxed as current income after age 59 and a half. A Roth IRA and a traditional IRA (individual retirement account) offer valuable retirement planning benefits, but they have different structures, income limits, and pros and cons. These are some additional factors to consider when comparing a Roth IRA and a traditional IRA.
Then, when you withdraw money in the future, traditional IRAs entail tax liabilities on anything that isn't taxable (deductible contributions and investment gains), while Roth IRA withdrawals are tax-exempt. In effect, you must determine whether the tax rate you pay today on your Roth IRA contributions will be higher or lower than the rate you will pay for distributions from your traditional IRA later on. In almost all cases (assuming your modified adjusted gross income allows it), you should prefer to contribute annually to a Roth IRA rather than a traditional IRA. Roth IRA beneficiaries also don't owe income taxes on withdrawals, although they are required to accept distributions or otherwise transfer the account to their own IRA.
Traditional IRAs offer the ability to deduct taxes today, while Roth IRAs are made with after-tax dollars (meaning there is no benefit in the here and now). In almost all cases (assuming your MAGI allows it), you should prefer to contribute annually to a Roth IRA rather than a traditional IRA. You can contribute to a traditional IRA and a Roth IRA as long as you meet certain requirements.