The two types of IRAs give you a choice about whether to enjoy tax benefits now or in the future.
Traditional: Similar to a 401(k) account, you can deposit pre-tax income in your traditional IRA account to enjoy tax savings now.
Roth: Make deposits that have already been taxed at today’s rates and enjoy tax-free withdrawals in your retirement.
A traditional IRA is a great option for anyone who doesn’t have an employer-sponsored 401(k) account. A Roth IRA is a nice complement to a 401(k) or Traditional IRA. Both Traditional and Roth IRA savings accounts are FDIC-insured, making it a safe way to save for retirement.