What's the main difference between a Roth and Traditional IRA?

A Traditional IRA gives you a tax deduction now, and you pay income tax on withdrawals in retirement. A Roth IRA offers no upfront deduction, but qualified withdrawals in retirement are completely tax-free, including all investment growth.

What is the 2026 IRA contribution limit?

For 2026, the combined contribution limit across Traditional and Roth IRAs is $7,500 for those under 50, or $8,600 for those 50 and older including the catch-up contribution. This limit applies to your total contributions across all IRA accounts, not per account.

Are there income limits for a Roth IRA?

Yes. For 2026, the ability to contribute directly to a Roth IRA phases out between $153,000 and $168,000 of modified adjusted gross income for single filers, and between $242,000 and $252,000 for married couples filing jointly. Traditional IRAs have no income limit to contribute, though the tax deduction may be limited if you or a spouse have a workplace retirement plan.

Which is better, Roth or Traditional?

It largely depends on whether you expect to be in a higher or lower tax bracket in retirement than you are now. If you expect a lower bracket in retirement, Traditional's upfront deduction is often more valuable. If you expect a similar or higher bracket, Roth's tax-free withdrawals typically win.

Can I have both a Roth and Traditional IRA?

Yes. You can contribute to both in the same year, as long as your combined contributions across both accounts don't exceed the annual limit. Many people use both to diversify their future tax exposure.

Roth IRA vs Traditional IRA: Which Is Right for You?

Same contribution limit, opposite tax treatment. Here's how to decide which one — or both — fits your situation.

Both accounts let your investments grow without being taxed year to year, and both are subject to the same annual contribution limit. The difference comes down entirely to when you pay tax: now, or in retirement.

The core difference

Feature	Traditional IRA	Roth IRA
Contributions	Often tax-deductible now	No upfront deduction
Growth	Tax-deferred	Tax-free
Withdrawals in retirement	Taxed as ordinary income	Completely tax-free (if qualified)
Required withdrawals	Required starting at age 73	None during the original owner's lifetime
Income limit to contribute	None	Phases out at higher incomes

2026 contribution limits

For 2026, the IRS allows up to $7,500 in combined Traditional and Roth IRA contributions for those under 50, or $8,600 for those 50 and older (including the $1,100 catch-up contribution). This is a combined limit across both account types — you can't contribute the full amount to each separately.

2026 Roth income limits

Roth IRAs phase out at higher incomes. For 2026, the ability to contribute directly phases out over these modified adjusted gross income ranges:

Filing status	Phase-out range
Single / Head of household	$153,000 – $168,000
Married filing jointly	$242,000 – $252,000

Above the top of the range, direct Roth contributions aren't allowed (though a "backdoor Roth" conversion strategy is commonly used by higher earners — that's a more advanced move worth discussing with a tax professional). Traditional IRAs have no income limit to contribute, though the tax deduction itself may be reduced or eliminated if you or a spouse are covered by a workplace retirement plan and your income is above certain thresholds.

Curious what either account could grow to by retirement? The Retirement Calculator projects your balance based on contributions, timeline, and expected return.

How to decide: the tax bracket question

The single most useful question is: do you expect to be in a higher or lower tax bracket in retirement than you are right now?

Expect a lower bracket in retirement (common if you're in your peak earning years now) — Traditional's upfront deduction is usually worth more, since you're avoiding tax at today's higher rate.
Expect a similar or higher bracket in retirement (common early in your career, or if you expect significant income growth) — Roth's tax-free withdrawals typically come out ahead, since you lock in today's lower rate.
Not sure — many people split contributions between both account types to hedge against future tax-rate uncertainty in either direction.

Other factors worth weighing

Roth IRAs offer more flexibility: contributions (not earnings) can be withdrawn anytime without penalty, and there's no required withdrawal age, which matters if you want to leave the account growing for heirs. Traditional IRAs reduce your taxable income today, which can matter if you're right on the edge of a tax bracket or trying to qualify for an income-based benefit this year.

See the long-run difference tax-free vs tax-deferred growth makes with the Compound Interest Calculator.

This article is general information, not tax or investment advice. Contribution limits, income phase-outs, and tax rules change over time — consult the IRS or a tax professional for your specific situation.