Opening an individual retirement account (IRA) can be a great way to save on taxes while investing in your future and setting yourself up for a successful retirement. IRAs are the second most popular type of retirement account in the U.S., behind employer-sponsored retirement accounts, such as the 401(k) and 403(b).
But should you open a Traditional IRA or a Roth IRA? Can you contribute to both? Here are the key differences and how to decide which would work best for you.
This post originally appeared at TIME.