Quick answer
Traditional and Roth IRAs differ primarily in the timing and treatment of taxes. The right structure depends on eligibility, expected future taxes, time horizon and withdrawal needs.
What matters in practice
Traditional IRA contributions may be deductible depending on circumstances, and distributions are generally taxable. Roth contributions are not deductible, while qualified Roth distributions can be tax-free.
Questions to ask before proceeding
Consider your current and future marginal tax rates, Roth income eligibility, expected holding period and whether a conversion would generate a current tax bill.
Risks and limitations
Neither account structure protects against cryptocurrency volatility. Roth conversions are not automatically advantageous.
Next steps
Use the retirement scenario calculator to explore illustrative outcomes, read the IRA custodian checklist, and compare provider costs before requesting information from any provider.
Editorial note
This is general education, not individualized tax, legal or investment advice. Verify current rules with the IRS and consult qualified professionals where appropriate. Financial claims and links require review before publication.