Who’s watching your retirement back?
Putting aside money each year into an IRA is a great way to save money for your retirement.
The Traditional IRA allows you to defer taxes on the earnings from your contributions until they are withdrawn. Also, certain contributions may be tax deductible in the tax year for which you made them.
The Roth IRA allows only nondeductible contributions. However, it features tax deferred earnings and tax-free withdrawals for certain distribution reasons after a five-year holding period.
Having these options lets you decide which priority is greater for you: minimizing your taxes now through a deduction or minimizing your taxes in the future with tax-free earnings.