What’s the difference between saving and investing? Some people might think the two are the same, but they couldn’t be more wrong.

A Traditional IRA lets you deduct contributions today but taxes withdrawals in retirement, with required distributions after age 70½. A Roth IRA flips this: you contribute after-tax dollars, but all qualified withdrawals—including growth—are tax-free, with no required distributions. The right choice depends on whether you prefer tax savings now or tax-free income later.