Traditional and Roth individual retirement accounts, or IRAs, are each an essential retirement savings vehicle. They also share two key similarities: Both are smart ways to grow your money in a tax-efficient way for retirement, and they each enable you to invest as much as $6,500 per year.
However, the similarities end there. As you consider which type of IRA is right for you to open today, the best choice will depend on your current and projected future income tax rates and, possibly, other factors. (And don't worry: Ultimately, you can have both kinds of IRAs, as well as a 401[k] plan.)
To get you started, here are some of the key differences between a traditional and a Roth IRA. To be sure, there are a number of caveats to each of kind of account, and it's well worth checking out the Internal Revenue Service website or consulting a tax specialist if you have specific questions.