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

The primary difference between a Traditional IRA and a Roth IRA is the type of tax benefit each offers. With a Roth IRA, you get no deduction for contributions, but if you follow all the rules, your investment earnings will be distributed tax- and penalty-free in retirement. Traditional IRAs can provide a deduction for contributions and you may defer taxes on investment earnings until funds are withdrawn, typically in retirement.