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Roth IRA vs. Traditional IRA: Which Retirement Account Is Right for You?

Compare Roth IRA and Traditional IRA side by side. Understand tax advantages, contribution limits, withdrawal rules, and which account best fits your retirement strategy.

2 options comparedUpdated March 2026
Editor's Pick
#1

Roth IRA

4.7
Open a Roth IRA
Best for: Younger earners who expect higher future tax rates

Pros

  • Tax-free withdrawals in retirement
  • No required minimum distributions during your lifetime
  • Contributions can be withdrawn penalty-free at any time

Cons

  • Contributions are not tax-deductible
  • Income limits restrict eligibility
  • Five-year rule applies to earnings withdrawals
#2

Traditional IRA

4.5
Open a Traditional IRA
Best for: Higher earners seeking an upfront tax deduction

Pros

  • Contributions may be tax-deductible
  • No income limits for contributions
  • Immediate reduction in taxable income

Cons

  • Withdrawals are taxed as ordinary income
  • Required minimum distributions start at age 73
  • 10% early withdrawal penalty before age 59.5

Crunch the numbers yourself

Use our free Retirement Calculator to analyze your own situation and make the best decision.

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Frequently Asked Questions

Can I contribute to both a Roth IRA and a Traditional IRA?

Yes, you can contribute to both in the same year, but your combined contributions cannot exceed the annual limit ($7,000 in 2026, or $8,000 if you are 50 or older). Splitting contributions lets you diversify your tax exposure in retirement.

What are the income limits for a Roth IRA?

For 2026, single filers with a modified adjusted gross income above $161,000 cannot contribute directly to a Roth IRA. Married couples filing jointly face a phase-out starting at $240,000. A backdoor Roth conversion may still be available.

When does a Traditional IRA make more sense than a Roth IRA?

A Traditional IRA is generally better if you expect to be in a lower tax bracket in retirement, want an upfront tax deduction now, or exceed Roth income limits. If your employer plan does not offer a match, the deductible Traditional IRA can still reduce your current tax bill.

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