Traditional IRAs and Roth IRAs are both great investment vehicles and provide wonderful tax advantages. The question is often asked: Which is better? The answer is: It depends. Both plans allow you to strategically plan and save for retirement; however, a Traditional IRA might not be the best plan for everyone, and a Roth IRA might not be the best plan for everyone. If you are in a high tax bracket now and expect to be in a lower tax bracket in the future a Traditional IRA might be best. If you are in a low tax bracket now and expect to be in a high tax bracket in the future a Roth IRA might be best. If used properly, the IRA type that you choose will help you save and best adjust your tax liability to a time in your life that makes the most sense. Traditional IRAs are tax-deferred vehicles. This means that the money is taxed as you pull it out of your plan. Roth IRAs are post-tax retirement vehicles. This means the contributions made to the Roth IRA have already been taxed and that qualified distributions from the plan are tax-free. It is also important to understand that income limits determine the deductibility of contributions in a Traditional IRA and eligibility of contributions to a Roth IRA.