Individual Retirement Accounts (IRAs) are an important part of planning for your future financial well-being. These specialty savings accounts offer tax advantages, and there are two primary categories of IRAs: Traditional and Roth.

1. Traditional IRAs allow tax-deductible contributions—taxes are not paid on your deposits until you begin making withdrawals, so the investments grow tax-deferred.
2. Contributions to Roth IRAs are not tax-deductible, so they are tax-free when you start making withdrawals because you’ve already paid the taxes.

You should discuss your specific situation with a tax expert to ensure that you choose the right plan for your needs.