Choosing the right type of IRA account may be a daunting task, so if you are wondering what type of IRA is better for you (Roth or Traditional) you may want to consider the following factors:

Tax benefits

Without any doubts, one of the most important factors when deciding between a Roth IRA and Traditional IRA is that you can deduct your Traditional IRA contributions as a tax break for the current year of your contribution. Tax deductible contributions may not apply to you if you participate in a retirement plan at work.

Roth IRA contributions may be deducted tax free at any time, since they have already been taxed.

» Read more: Roth IRA or Traditional IRA, Which one is better?