Your IRA Details
$
%
%
%
Comparison Results
Traditional IRA Balance
—
Roth IRA Balance
—
Traditional After-Tax Value—
Roth After-Tax Value—
Years of Growth—
Total Contributions—
Roth IRA vs Traditional IRA: Which Is Right for You?
Both Roth and Traditional IRAs are powerful retirement accounts with different tax advantages. The key question is simple: do you expect to pay a higher tax rate now or in retirement?
How Each Account Works
Traditional IRA: Contribute pre-tax dollars, reduce your taxable income today, pay income taxes on all withdrawals in retirement. Best when your current tax rate is higher than your expected retirement rate.
Roth IRA: Contribute after-tax dollars — no deduction today — but all growth and qualified withdrawals in retirement are completely tax-free forever. Best when your current rate is lower or equal to your expected retirement rate, or when you want tax flexibility in retirement.
2026 Contribution Limits
- Annual IRA limit: $7,500 (under 50), $8,600 (age 50+)
- Roth IRA income phase-out: $153,000–$168,000 single; $242,000–$252,000 married
- Traditional IRA deductibility phases out at $81,000–$91,000 (single) if covered by a workplace plan
Key Roth IRA Advantages Beyond Returns
- No required minimum distributions (RMDs) during your lifetime — money can grow indefinitely
- Contributions (not earnings) can be withdrawn any time penalty-free — acts as a flexible emergency fund
- Tax diversification: having both pre-tax and after-tax accounts gives flexibility to manage your tax bracket in retirement
Frequently Asked Questions
Can I contribute to both a Roth and Traditional IRA in the same year? ▼
Yes, but your combined contributions to both accounts cannot exceed the annual limit ($7,500 in 2026, or $8,600 if age 50+). For example, you can put $4,000 in a Roth and $3,500 in a Traditional IRA. This split-contribution approach gives you tax diversification.
What is the backdoor Roth IRA strategy? ▼
High earners above the Roth IRA income limit can still access a Roth account via the "backdoor" method: make a non-deductible contribution to a Traditional IRA (no income limit), then immediately convert it to a Roth IRA. This is legal and widely used. Be aware of the pro-rata rule if you have other pre-tax IRA balances, which can create a partial tax bill on conversion.
Can I have an IRA if I have a 401(k)? ▼
Yes. The $7,500 IRA limit and the $24,500 401(k) limit are completely separate. You can max both. However, the tax deductibility of a Traditional IRA contribution phases out at certain income levels if you (or a spouse) are covered by a workplace retirement plan. Roth IRA eligibility is based only on income, not whether you have a 401(k).