Updated July 8, 2026
Choose a Roth IRA if you expect to be in the same or a higher tax bracket in retirement, because you pay tax now and withdraw tax-free later. Choose a Traditional IRA if you want the deduction today and expect a lower bracket later. Many people, especially younger savers, lean Roth because their income and tax rate are likely to rise.
The core difference
| Roth IRA | Traditional IRA | |
| Tax now | No deduction (after-tax) | Often deductible |
| Growth | Tax-free | Tax-deferred |
| Withdrawals in retirement | Tax-free | Taxed as income |
| Required withdrawals (RMDs) | None for the owner | Yes, starting in your 70s |
| Early access to contributions | Anytime, penalty-free | Penalties before 59 and a half |
Who should pick which
A Roth tends to win for younger workers and anyone in a relatively low bracket today who expects higher income later, and for people who value tax-free income and no required distributions in retirement. A Traditional IRA tends to win for higher earners who want the deduction now and expect to drop into a lower bracket once they stop working.
Watch the income limits
Roth IRAs have income limits; high earners may be phased out of contributing directly (though a "backdoor" Roth is sometimes used). Traditional IRA deductibility can also phase out if you or a spouse have a workplace plan. Check the current year's IRS limits before you contribute.
Contribution limits
For 2026 the IRA contribution limit is $7,500, with an extra $1,100 catch-up if you are 50 or older, per IRS Notice 2025-67. These figures are adjusted most years. The limit is combined across all your IRAs, so you can split it between Roth and Traditional but not double it. Always confirm the current year's figure with the IRS.
Compare the two accounts on your numbers
See how a Roth and a Traditional balance actually compare once withdrawals are taxed.