A Roth IRA and a traditional IRA have the same 2026 contribution limit of $7,500, or $8,600 from age 50. The difference is when you pay tax. With a traditional IRA you may get a deduction now and pay tax when you withdraw. With a Roth IRA you pay tax now and qualified withdrawals are tax free.
Quick check: run your own numbers in our free Roth IRA calculator, which compares both side by side.
Roth vs traditional IRA at a glance
- Tax break: traditional now, Roth later
- Withdrawals in retirement: traditional taxed as income, Roth tax free
- Income limit to contribute: traditional none, Roth phases out between $153,000 and $168,000 for single filers in 2026 ($242,000 to $252,000 married filing jointly)
- Deduction limit: the traditional deduction phases out if you have a workplace plan, between $81,000 and $91,000 for single filers in 2026
- Required minimum distributions: traditional yes, Roth none for the original owner
- Early access: Roth contributions (not earnings) can come out any time without tax or penalty
When a Roth IRA usually wins
- You are early in your career and expect to earn more later.
- Your tax rate today is low, for example 10% or 12%.
- You want tax-free income in retirement and no required withdrawals.
- You think tax rates in general will be higher in the future.
When a traditional IRA usually wins
- You are in a high bracket today and expect a lower one in retirement.
- You need the deduction now to lower this year’s tax bill.
- Your income is above the Roth limit and you do not want to do a backdoor Roth.
A simple example
Say you invest $7,500 a year from age 30 to 65 at 7%. Both accounts grow to about $1.04 million. With a Roth, all of it is yours. With a traditional IRA, you also invested your tax savings each year, but you pay tax on every withdrawal. If your tax rate is 22% now and 15% in retirement, the traditional comes out a little ahead. If the rates are the same, or higher later, the Roth wins. The calculator runs this with your own rates.
You do not have to pick just one
Many people split their savings, for example a traditional 401(k) at work and a Roth IRA on the side. Having both gives you flexibility to choose which account to draw from each year in retirement and manage your tax bracket. See how your workplace plan grows with our 401(k) calculator.
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Frequently asked questions
Can I contribute to both a Roth and a traditional IRA?
Yes, but the $7,500 limit is shared between them. You could put $4,000 in one and $3,500 in the other.
Can I convert a traditional IRA to a Roth?
Yes. You pay income tax on the converted amount in the year you convert. Converting in a low-income year can make sense.
What is the deadline?
You can make 2026 contributions until the tax filing deadline in April 2027.
This article is general information, not tax advice. Rules and limits change, so confirm with the IRS or a tax professional.
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