Difference between regular IRA and traditional IRA?

Question

what's the difference of the two?

Please explain each one to please.

Answer 1

Same thing - just different terms.

Answer 2

There used to be a difference between a "rollover" IRA (funds from former employee retirement plan) and "traditional" IRA in case you wanted to roll the former into a new employee plan.  However, except in rare cases, that no longer matters and former retirement plan funds transferred to an IRA can comingled with IRA contributions and other traditional IRA funds.  You have many more investment choices in an IRA anyway than in a 401(k), 403)b, etc.

If you want to convert funds from any traditional IRA to a Roth IRA, you have to pay tax (but no penalty) on the converted amount.  I am doing that at the rate of about $10,000/yr (covered by W-4 adjustment for the tax), so hopefully my 401(k) distributions will be taxed at a lower rate than if all my retirement funds were tax deferred (Roth IRA distributions are tax free after age 59.5).

See IRS Publication 590 for details.