What are the disadvantages of a Roth IRA?

One key disadvantage: Roth IRA contributions are made with after-tax money, meaning there’s no tax deduction in the years you contribute. Another drawback: Withdrawals of account earnings must not be made until at least five years have passed since the first contribution, making a Roth less beneficial to open if you're in late middle age.

Are Roth IRAs tax-advantaged?

That isn’t the case with traditional IRAs. In a nutshell, Roth IRAs are tax-advantaged retirement accounts that allow you to pay your tax bill upfront and then sit back, relax, and enjoy tax-free growth and withdrawals.

Does a Roth IRA defer taxes?

While a traditional IRA defers your taxes, a Roth IRA is not designed to give you immediate tax benefits. So, if you decide to contribute $4,000 to a Roth IRA this year, it’s all after-tax money.