What is the difference between a traditional IRA and a Roth IRA?

A traditional IRA allows you to contribute pre-tax income, reducing your taxable income for the year. However, you pay taxes when you withdraw the funds in retirement. Withdrawals must start at age 73. Contributions are typically tax-deductible depending on your income and filing status. A Roth IRA uses after-tax income for contributions, meaning you don’t get an immediate tax break. However, withdrawals in retirement are tax-free, provided certain conditions are met. Roth IRAs have no required minimum distributions during the account holder's lifetime, offering more flexibility for estate planning. Income limits apply to Roth IRA contributions.