-Tax free earnings and distrubtions (in other words, when you withdraw money in retirement, there are NO tax implications)
-no current-year tax deduction
-it's after-tax contributions going in, so you are paying taxes on your contributions at a high rate (assuming you are at a higher tax bracket your "working" years than when in retirement)
-don't be surprised when/if they do away with Roths and don't allow any more contributions into Roth IRAs at some point in the future (any money currently in Roths would be grandfathered in, but they won't allow new contributions....I think there is a decent chance this happens within 10-20 years)
-current year tax deduction
-tax deferred growth
-getting taxed at hopefully a lower tax rate when you are in your retirement years
-withdrawals are fully taxable
-in contrast to a Roth (where you pay taxes only on contributions, in a Traditional when all is said and done you will pay taxes on everything - contributions and earnings)
Best advice is that if you really need the current year tax deduction (save about $1000 depending on your tax bracket, assuming you make a $5000 contribution), then do a Traditional. If you are not concerned with the current year tax deduction, do a Roth....then you will end up only paying taxes on the contributions, but the earnings will be tax free
Also, make sure you are within the income limits.
A solid idea is to actually do both and diversify your tax implications.
This post was edited on 2/15 at 11:12 am