What is the difference between a traditional IRA and a Roth IRA?
There are two types of IRAs offered. A traditional IRA allows you to invest your money before it is taxed (“pre-tax” or “tax-deferred”). This allows a greater amount of money to grow over time than if it had been taxed. Generally, it is taxed only when you withdraw it at retirement. A Roth IRA allows you to invest your money that has already been taxed (“after-tax”), after which, the earnings on that money is, generally speaking, tax free. There are advantages to each, and you are permitted to have one or both. Please consult a tax professional for specific tax questions.