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

The main difference is when you get the tax benefit. With a traditional IRA, contributions may be tax-deductible now, reducing your taxable income in the current year, but you pay ordinary income taxes when you withdraw the money in retirement. With a Roth IRA, contributions are made with after-tax dollars so there's no upfront deduction, but qualified withdrawals in retirement are completely tax-free, including all the growth. Roth IRAs also have no required minimum distributions during your lifetime, while traditional IRAs require you to start taking withdrawals at age 73. Roth IRAs have income limits that can restrict high earners from contributing directly, whereas traditional IRAs have no income limits for contributions, though deductibility may be limited.