Roth IRA vs Traditional IRA

by Anonymous

The Roth vs Traditional IRA decision hinges on whether you expect higher tax rates now or in retirement. Traditional IRAs provide an upfront deduction with taxable withdrawals later, while Roth IRAs use after-tax contributions but grow and distribute tax-free. Young workers with lower current incomes typically benefit from Roth, while high earners near retirement may prefer Traditional.

Roth IRA

No
tax deduction now
Yes, after 59½
tax-free withdrawals
$7,000 ($8,000 if 50+)
2026 contribution limit
$150K single, $236K married
income limits
None
required minimum distributions
Contributions anytime tax-free
early withdrawal

Traditional IRA

Yes (income limits apply)
tax deduction now
No (taxed as income)
tax-free withdrawals
$7,000 ($8,000 if 50+)
2026 contribution limit
No limit (deduction limits)
income limits
Starting at age 73
required minimum distributions
10% penalty + taxes before 59½
early withdrawal

Like this comparison? Make it your own.

Sign up to use as template