Individual Retirement Arrangements (IRAs) were created to give wage earners a tax-deferred investment plan for retirement. Regardless of income or participation in other pension plans, taxes on Traditional IRA earnings are deferred until the money is withdrawn (usually during retirement when you will most likely be in a lower tax bracket). Many wage earners can also deduct some or all of their contributions to a Traditional IRA.
All contributions and earnings left in the Roth IRA for at least five years and withdrawn after age 59½ will not be taxed, no matter what your tax bracket or income level. And, unlike the Traditional IRA, you do not have to start withdrawing money when you reach age 70½.
* Consult a tax professional when withdrawing funds from IRA's*