Taxed when you withdraw
With a Traditional IRA, you can deduct – and defer – the amount of your contributions on your tax return. This tax-deferment means you won’t owe income taxes until after you withdraw your money from your IRA account – helping you to save more money, right now.
Taxed when you contribute
With a Roth IRA, your contributions are not tax-deductible, and that provides a big advantage. By paying taxes now, the contributions you make to your ROTH IRA will grow tax-free – including the investment gains in your account. You can also withdraw money you’ve contributed to a Roth IRA, at any time, without penalty