Roth IRA vs Traditional IRA: Which Retirement Account Saves You More?

The key difference is when you pay taxes. Traditional IRA contributions are tax-deductible now, but withdrawals are taxed in retirement. Roth IRA contributions are after-tax, but qualified withdrawals are completely tax-free. If you expect higher taxes in retirement, Roth is often better. If you need a deduction now and expect lower future rates, Traditional may win.