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Also in a Traditional IRA you cannot remove the money prior to retirement without being heavily penalized.
In a Roth IRA you pay taxes on it the year that you invest the money. Though the Roth IRA does bring some benefits such as you can retrieve your money without being penalized as long as you opened your account over five years prior to withdrawal and your are at least 59.5 years old at time of withdrawal. Some exceptions are death, disability or first time purchase of a home.
There is also an Educational IRA which you can contribute a maximum of $500 per year per child. This obviously is only good enough for a college education if you plan to invest in other places...
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