Roth vs. Traditional IRA

Basically, the money you put in a traditional IRA is "pre-tax". You get to take it out of your gross income before you pay taxes on it and put it in the IRA, The catch is that you have to pay tax on all you the earn on it when you take it out. You also get penalized if you take it out early. With the Roth, your taxes are taken out before you invest it in the IRA, but all your earnings are tax free. (I'm not sure about penalities if you cash out before retirement on the Roth). So, if you are young, the Roth is usually a better bet, because your taxless earnings there will be larger than the difference you untaxed initial investement of a traditional IRA. Best bet is to talk to a pro at the company you are planning to open the account with. Hope this helps.

I have very limited knowledge about the Roth and traditional IRA but what I know is that the Roth IRA is post tax dollars and the traditional IRA is pre-tax dollars. And in the event that you want to take out the money, say for a downpayment for a house or for something else, you dont get charged penalty or taxed if you have the Roth IRA. Most people seem to think that the Roth IRA is a better deal or investment.