With a combined income of $80,000, you can contribute up to the maximum limit of $5,500 each, plus another $1,000 if you are 50 years or older. As a couple, you can contribute up to $11,000 or $13,000 if you are both at least 50 years old.
The choice between a traditional IRA and a Roth IRA depends on your age, current tax bracket and expected tax income at the time of your retirement.
The difference between a traditional IRA and a Roth IRA is the tax treatment. With the traditional IRA, you get tax-deferred benefit, which means the money you contribute to your IRA now will not be taxed. This allows you to invest the full amount and earn more income. Taxes are only taken out when you withdraw from the account.
A Roth IRA, on the other hand, will accept after-tax contributions, meaning you will pay taxes now. However, the money will never be taxed again, neither is the profit your earn from investing the original amount.