An IRA (Individual Retirement Accounts) refers to several types of accounts an employee may set up during their working life in order to save money for when they retire. The attractive thing about these products is that they allow people to save money while also avoiding certain taxes. There are two main IRA products: Traditional IRA and Roth IRA. It is important to know how they work, what they have to offer and the specific characteristics of each one. That being said, and before going into detail on each IRA, the main difference between a Traditional and a Roth IRA is when an employee pays taxes on their IRA savings.