The benefit of the IRA is the pretax (read that as "tax deductible") deposit, deferred tax on growth, and perhaps lower tax on withdrawal. The Roth IRA, on the other hand, goes in post tax, but tax free growth and withdrawal at the end. In general, a young person, or someone in the 12% marginal bracket, might consider the Roth, but use the pretax IRA when in the higher 22% bracket. The limit this year is $5500.
The downside? Making the deposit, then not actually investing it. Investing doesn't need to be a full time job, but one needs to be mindful of their investments.
You lost $9843.39. Seriously, how can anyone answer this? I'd suggest you read the "related" questions on the right side of this page, and tags that show IRA or Roth IRA, learn all you can, and return with any questions before actually doing anything. Knowledge is more valuable for you than even that first deposit.