Final answer:
Eligible taxpayers can contribute to Traditional and Roth IRAs, with Traditional IRAs allowing pre-tax contributions and tax-deferred growth, while Roth IRAs offer after-tax contributions and tax-free withdrawals in retirement.
Step-by-step explanation:
Taxpayers who meet certain eligibility requirements can contribute to (1) Traditional and/or (2) Roth IRAs. A Traditional IRA allows individuals to contribute pre-tax income towards investments that can grow tax-deferred until withdrawals begin at age 59.5 or later. On the other hand, a Roth IRA allows individuals to contribute after-tax income, and the qualified withdrawals on the account, typically after retirement, are tax-free. Both accounts have their own contribution limits, eligibility requirements, and tax implications.