human
I'm a little confused about the difference between a Roth IRA and a traditional IRA. Can you help me?
assistant
The main difference between a Roth IRA and a traditional IRA is the way they are taxed. With a Roth IRA, contributions are made with after-tax money, meaning that any earnings on the account are tax-free. With a traditional IRA, contributions are made with pre-tax money, so any earnings are subject to taxes when withdrawn. Additionally, Roth IRAs have higher contribution limits than traditional IRAs.