<prompt> Human: I worked as a freelancer all last year and didnt pay enough taxes. Now I owe about 10K. My accountant suggested that I max out my traditional IRA account to reduce my taxes by a little bit. I was wondering - is this worth it since I will still have to pay taxes on it down the line? I have always put my money in a Roth IRA in the past. My accountant is saying that depending on how I take that money out like if I dont take out that much each year, I might not end up having to pay too much tax on that later on. What do I need to consider when deciding whether or not to put my money in a traditional IRA?Update: Thanks so much for all of the tips. I took all your advice and just maxed out a traditional IRA. It saved me almost 3K in taxes. Thanks!  <response>: The basic idea is that at the time you retire, your annual income will put you in a lower tax bracket then you are in now, and paying taxes on this money then will cost less than paying them now.At the time you start to draw it, you will be paying taxes on both the initial contribution, and the growthearnings, but only on the amount you draw each year. The amount you need or want to draw each year will partially determine your tax bracket.But if you put your money in a ROTH, you have to pay taxes on that income this year at a assumed higher rate than you would have to at retirement. However, you will not have to pay any taxes on the growthinterest that investment earns. If your investments get a good return, and youve got a lot of time to let those earnings compound, then this is a FREAKING AWESOME dealtax shelter. At retirement you can pull that money out at whatever rate you want and never have to pay income taxes on it. Having some of both types allows you to have a decent retirement income, but youre only declaring income on the Traditional IRA draws. Obv. this is just a broad stroke description of the situation, because a lot depends on your current and expected financial situation, and what other tax law gems you can take advantage of, but its the nuts and the bolts.I love the ROTH option for the most part, especially if youre still young, but it will not help you out of your current tax situation. Contributing to ROTH will not change what you owe this year. If thats what you need to do, then yes, traditional IRA, or a SEP-IRA or self-employed 401k is the way to go. Fidelity and Vanguard are both good choices to help you set one of these up.So you have to decide, do you need help now, or save it for later? 