What is the tax difference between a traditional IRA and a Roth IRA?

Traditional IRA contributions may be tax-deductible (reducing current-year taxable income), and withdrawals in retirement are taxed as ordinary income. Roth IRA contributions are made with after-tax dollars — no deduction now — but qualified withdrawals in retirement are completely tax-free. The choice depends on whether you expect to be in a higher or lower tax bracket in retirement.