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

With a Traditional IRA, contributions may be tax-deductible now, and you pay income taxes when you withdraw in retirement. With a Roth IRA, contributions are made with after-tax dollars, but qualified withdrawals in retirement are completely tax-free. Generally, a Roth is better if you expect to be in a higher tax bracket in retirement; a Traditional IRA is better if you want the deduction today.