Last updated: June 14, 2026
The short version
A Roth IRA is often described as after-tax money with potentially tax-free qualified withdrawals. A Traditional IRA is often described as potentially deductible money now, with taxable withdrawals later.
2026 contribution limit
For 2026, the IRA contribution limit is $7,500. If you are age 50 or older, the catch-up amount is $1,100, bringing the total to $8,600.
Why tax rates matter
If your tax rate is lower now than it may be in retirement, Roth can look attractive. If your tax rate is higher now and lower later, Traditional can look attractive. Real life also includes eligibility rules, income limits, state taxes, and how you use any tax savings.
Use the calculator
Try the Roth vs Traditional IRA Calculator to compare simple assumptions.
Important note
This guide is educational only and is not financial, investment, tax, legal, accounting, or retirement advice.