What is the primary tax benefit of a traditional IRA compared to a Roth IRA?

The primary tax benefit of a traditional IRA compared to a Roth IRA is the ability to make tax-deductible contributions. When you contribute to a traditional IRA, you can often deduct the amount of your contribution from your taxable income, which lowers your tax bill in the year you make the contribution. This is particularly beneficial for individuals who are looking to reduce their current taxable income and save for retirement simultaneously.

In contrast, Roth IRA contributions are made with after-tax dollars, meaning you do not receive a tax deduction when you contribute. However, qualified withdrawals from a Roth IRA are tax-free, which is a significant advantage for many when they reach retirement age, but it does not provide the immediate tax benefits associated with a traditional IRA.

The other options provided discuss features that either do not apply specifically to traditional IRAs or are advantages of Roth IRAs. For example, tax-free withdrawals are a hallmark of Roth IRAs, while both types of accounts have similar contribution limits. Early withdrawal penalties are a consideration for both IRAs but are not universally waived for traditional IRAs, making the distinction of tax-deductible contributions the primary benefit in the context of this question.