Retirement planning is essential regardless of one's occupation or age. Retirement accounts can be broadly categorized into employer-sponsored plans and individual retirement accounts (IRA). IRAs are vital because they allow individuals to choose a personalized retirement saving plan while saving on taxes.

Further, Roth IRA and traditional IRA are two common types of IRA plans. Traditional IRA is a form of IRA where an individual contributes pre-tax dollars with the intention that their money grows tax-free. However, after age 59 and a half, withdrawals are taxed as current income.

A Roth IRA is a retirement account that provides individuals with tax-free growth and withdrawals in retirement. With a Roth IRA, one can contribute their income after tax and then make tax-free withdrawals after age 59 and a half. Like the traditional IRA, there's no set minimum contribution, while the maximum annual individual contribution is $6,500. However, while a Roth IRA is ideal for people who will be in a higher tax bracket when they start withdrawal, a traditional IRA is ideal for workers who envisage being in the same tax bracket when they withdraw.