A Roth IRA is invested with after-tax dollars. While the contributions aren’t tax deductible, the growth and withdrawals are tax-free if certain requirements are met. This is particularly beneficial if taxes are higher during retirement. But some limitations based on filing status and salary may prevent certain individuals from being eligible for a Roth IRA.
A Traditional IRA’s contributions are potentially tax deductible and the growth is tax-free, but withdrawals are taxed as income at retirement, except for any withdrawals of non-deductible contributions or after-tax contributions rolled over from an employer’s eligible retirement plan made to any of an individual’s Traditional IRAs.
There are no limitations on salary or filing status to prevent a user from being eligible for this type of account.