Individual Retirement Arrangement
Traditional vs. Roth IRA's
Traditional IRA’s: potentially tax-deferred retirement plans; you don't pay taxes on your contributions until you withdraw the funds. Contributions can be made as long as you have *earned income.
Roth IRA’s: you pay taxes now and withdraw the funds tax-free when you retire. Contributions can be made as long as you have *earned income.
* See irs.gov for more details.