If you use an IRA, you’ll need to choose between a traditional IRA or Roth IRA.
If you use an IRA, you’ll need to choose between a traditional IRA or Roth IRA. Traditional IRAs let you contribute pretax money, which you’ll then pay taxes on when you withdraw in retirement. This means you get a tax deduction this year but may pay more taxes in retirement. But this could end up saving you money overall if your tax bracket is lower in retirement than it is today.