A traditional IRA and a Roth IRA are two types of retirement accounts that offer different tax benefits. A traditional IRA allows you to make pre-tax contributions, meaning you can deduct your contributions from your taxable income. This reduces your taxable income and can result in a lower tax bill. However, when you withdraw money from a traditional IRA, you will have to pay taxes on the money.

A Roth IRA, on the other hand, allows you to make after-tax contributions. This means you won’t get a tax deduction for your contributions, but you will be able to withdraw your money tax-free in retirement. This can be beneficial if you expect to be in a higher tax bracket when you retire.

Both types of IRAs have their advantages and disadvantages, so it’s important to consider your individual situation when deciding which one is right for you.