Answer
The difference between a traditional IRA and a Roth IRA is mentioned below-
Traditional IRA is a tax-exempt IRA but you have to pay the tax on the withdrawals but in Roth IRA you have to pay taxes at the time of deposit but withdrawals are tax-free.
Work Step by Step
Traditional IRA is tax-exempt but you have to pay the tax on the withdrawals. The withdrawals can be started after reaching the age of \[59\frac{1}{2}\] or older.
Traditional IRA is considered as a savings plan where you can set aside a sum of money for retirement. People under 50 can sum up to the amount of $5,500 per year and people 50 or older than 50 can sum up to the amount of $6,500 per year.
With A Roth IRA, you have to pay taxes on the money at the time of deposit, but you can withdraw your earnings tax-free beginning when you are\[59\frac{1}{2}\] years old. A Roth IRA has slightly different tax benefits.
