The two most popular types of individual retirement accountsÃ? are traditional and Roth.Ã? In a traditional IRA, the money you put in and what you earn on it is not taxed until you start to withdraw it in retirement.Ã? Ã? The Roth IRA is set-up just the opposite. According toÃ? UW Extension Financial Specialist Michael Gutter, “The Roth IRA will allow you to take current after tax income and put that into an account. It’s already been taxed, you didn’t get a deduction for it. And, all earnings on that money will grow tax free. A Roth IRA won’t help your taxes today, but helps your taxes in the future.”
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