Roth IRA versus a traditional IRA. In almost all cases the Roth IRA is a better deal than the traditional IRA. Contributions to Roth IRAs are not deductible on your tax return, but there won't be any taxes on the money you take out of your account after age 591/2.

A Roth IRA is advantageous if your tax bracket will be the same or higher when you retire than what it is currently or if you don't want to take mandatory distributions from your account when you reach age 701/2. With a Roth IRA, you can keep your money in a nest egg for future use past age 701/2 or pass it on to your beneficiaries as an income-tax-free inheritance. A Roth IRA is absolutely better than a traditional IRA if your contribution to a traditional IRA will be nondeductible.

A traditional IRA may be a good choice if your contribution is deductible and you believe your tax bracket will be lower than it currently is after you retire. However, the younger you are, the more advantageous the Roth IRA is.