Complete guide comparing Roth IRA and Traditional IRA retirement accounts. Understand tax differences, contribution limits, income limits, and which account saves you more.
| Feature | Roth IRA | Traditional IRA |
|---|
| Tax Treatment | Taxed now, tax-free withdrawals | Tax-deductible now, taxed withdrawals |
| Contribution Limit (2026) | $7,000 ($8,000 if 50+) | $7,000 ($8,000 if 50+) |
| Income Limit | Yes (phase-out above $146K single) | No limit (deductibility has limits) |
| Required Distributions | None | Required starting at age 73 |
| Early Withdrawal | Contributions anytime tax-free | 10% penalty before age 59½ |
| Best For | Expecting higher tax bracket later | Higher tax bracket now |
Frequently Asked Questions
Can I have both a Roth and Traditional IRA? +
Yes, but your total contributions to both can't exceed the annual limit ($7,000 in 2026, or $8,000 if 50+). You can split it however you want.
What is the backdoor Roth IRA? +
It's a strategy where you contribute to a Traditional IRA (no income limit) and then convert it to a Roth IRA. This lets high earners access Roth benefits. Note: the pro-rata rule applies if you have existing pre-tax IRA balances.
Should I convert my Traditional IRA to Roth? +
It depends on your current vs expected future tax rates and whether you can pay the conversion taxes from non-retirement funds. Generally, convert in years when your income is unusually low.