IRAs have low annual contribution limits. One drawback to using IRAs to save for retirement is that the annual contribution limits are relatively low. Roth IRAs offer tax-free withdrawals for Future You. However, if you're struggling to save, taking a tax deduction now by contributing to a traditional IRA might be just the carrot you need to keep your retirement savings on track.

The downside is that income taxes are due both to your contribution and to the money you earn when you make withdrawals during retirement.