Traditional Versus Roth IRA

"The main difference is when you pay income taxes on the money you put in the plans. With a traditional IRA, you pay the taxes on the back end - that is, when you withdraw the money in retirement. But, in some cases, you may escape taxes on the front end - when you put the money into the account.

With a Roth IRA, it's the exact opposite. You pay the taxes on the front end, but there are no taxes on the back end.

There are other differences too. While almost anyone with earned income can contribute to a traditional IRA, there are income limits for contributing to a Roth IRA. So not everyone can take advantage of them.

Roth IRA contributions are limited by income level. In general, you can contribute to a Roth IRA if you have taxable income and your modified adjusted gross income is either:
less than $167,000 if you are married filing jointly."

Source: CNN Money Retirement Guide

"For 2013 and 2014, the maximum you can contribute to all of your traditional and Roth IRAs is the smaller of: $5,500 ($6,500 if you’re age 50 or older), or
your taxable compensation for the year."

Source: IRS - IRA Contribution Limits

"With 2013 over, taxpayers may think it's too late to stash earnings in a retirement account and get a tax deduction for the year.

But 2013 contributions for many kinds of retirement accounts can be made up until April 15, or whenever you file your taxes, and some can be made even later by those who get extensions."

Sourde: USA - Money - It's not too late to contribute to your IRA