Roth IRA vs Traditional IRA Calculator 2026

Q: Should I choose Roth IRA or Traditional IRA?

Choose Roth IRA if you expect to be in a higher tax bracket in retirement than you are now. Choose Traditional IRA if you expect lower taxes in retirement. Generally: younger people and lower earners benefit more from Roth; higher earners closer to retirement often benefit more from Traditional.

Q: What is the IRA contribution limit for 2026?

The IRA contribution limit for 2026 is $7,000 per year ($8,000 if you are age 50 or older). This limit applies to the total of all IRA contributions — Roth and Traditional combined.

Q: What is the Roth IRA income limit for 2026?

For 2026, Roth IRA contributions phase out between $150,000–$165,000 for single filers and $236,000–$246,000 for married filing jointly.

Q: Which IRA grows faster — Roth or Traditional?

Both grow at the same rate — the difference is in taxes. Roth grows tax-free with tax-free withdrawals. Traditional grows tax-deferred but withdrawals are taxed as ordinary income. Roth wins if your future tax rate is higher; Traditional wins if lower.

Q: What is a backdoor Roth IRA?

A backdoor Roth IRA is a strategy for high earners who exceed the Roth income limits. You contribute to a Traditional IRA (non-deductible) then immediately convert it to a Roth IRA.

Q: At what age must I take RMDs?

For Traditional IRAs, Required Minimum Distributions (RMDs) start at age 73 (SECURE 2.0 Act). Roth IRAs have NO RMDs during the owner's lifetime.

Your Details

Current Age

Retirement Age

Annual Contribution ($)

2026 max: $7,000 ($8,000 if 50+)

Expected Return (%/yr) Historical S&P 500: ~10% (7% after inflation)

🟣 Roth IRA — Pay Tax Now

Current Tax Rate (%) Pay tax now · Withdrawals 100% tax-free

🔵 Traditional IRA — Defer Tax

Retirement Tax Rate (%) Get deduction now · Pay tax at withdrawal

Roth vs Traditional IRA — Key Differences

Feature	🟣 Roth IRA	🔵 Traditional IRA
Tax on contributions	After-tax (no deduction)	Pre-tax (tax deductible)
Tax on withdrawals	✓ 100% tax-free	Taxed as ordinary income
2026 contribution limit	$7,000 / $8,000 (50+)	$7,000 / $8,000 (50+)
Income limit	Single ≤$165K · MFJ ≤$246K	✓ No limit
Required distributions	✓ None — ever	Must start at age 73
Early withdrawal of contributions	✓ Anytime, penalty-free	10% penalty before 59½
Best for	Young earners · Low tax now · Long horizon	High earners · Need deduction now · Expect lower taxes later

💡 Not sure? Most advisors recommend Roth for earners under 40. Enter your details above for the exact dollar difference for your situation.

Roth vs Traditional IRA — The Real Decision

Both IRAs grow at the same investment rate — the difference is purely in taxes. Roth: you contribute after-tax dollars, so at retirement all withdrawals are completely tax-free. Traditional: your contribution reduces taxable income today (tax deduction), but every dollar you withdraw in retirement is taxed as ordinary income.

The math is simple: if your tax rate is the same now and in retirement, both IRAs produce identical after-tax wealth. Roth wins if your future tax rate is higher. Traditional wins if your future tax rate is lower.

Feature	🟣 Roth IRA	🔵 Traditional IRA
Tax treatment	After-tax contributions	Pre-tax (deductible)
Withdrawals in retirement	✓ 100% tax-free	Taxed as ordinary income
RMDs	✓ None — ever	Must start at age 73
Income limits (2026)	Single ≤$165K · MFJ ≤$246K	✓ No limit to contribute
Early withdrawal of contributions	✓ Anytime, penalty-free	10% penalty + taxes (<59½)

The Tax Rate Uncertainty Argument for Roth

Nobody knows what federal income tax rates will look like in 20 or 30 years. The current tax brackets were set by the 2017 Tax Cuts and Jobs Act and several provisions are scheduled to sunset. Congress has repeatedly raised rates on top earners over the past century. Choosing Roth locks in today's known rates. Traditional IRA exposes you to whatever Congress decides rates should be when you're withdrawing in 2040, 2050, or 2060.

This asymmetry — known today vs unknown future — is why most financial planners lean Roth for clients with long time horizons. The certainty of tax-free withdrawals has real value that doesn't show up in a spreadsheet.

Required Minimum Distributions: The Hidden Traditional IRA Problem

Traditional IRA holders must begin taking RMDs at age 73 — whether they need the money or not. If you've built a $1.2 million Traditional IRA by age 73, your RMD in year one might be $46,000 — added on top of Social Security income, potentially pushing you into a higher bracket than expected. Roth IRAs have no RMDs. The money can stay invested and compounding tax-free for the rest of your life.

When Traditional IRA Actually Wins

If you're currently in the 32–35% bracket and expect to retire on much lower income (under $60,000/year), the deduction now is worth more than tax-free withdrawals later. Similarly, if you're within 10 years of retirement, the compounding advantage of the Roth is smaller. And if you're over the Roth income limit ($165,000 single, $246,000 MFJ in 2026), you can't contribute directly — though the backdoor Roth strategy remains available.

Last updated: June 2026. Limits may change annually with IRS adjustments. This calculator is for educational purposes only — consult a tax advisor for your specific situation.

Should I choose Roth IRA or Traditional IRA?+

Choose Roth IRA if you expect to be in a higher tax bracket in retirement than you are now. Choose Traditional IRA if you expect lower taxes in retirement. Generally: younger people and lower earners benefit more from Roth; higher earners closer to retirement often benefit more from Traditional. When in doubt, most financial advisors recommend Roth for anyone under 40.

What is the IRA contribution limit for 2026?+

The IRA contribution limit for 2026 is $7,000 per year ($8,000 if you are age 50 or older). This limit applies to the total of all IRA contributions — Roth and Traditional combined. You can split contributions between accounts but the total cannot exceed the limit.

What is the Roth IRA income limit for 2026?+

For 2026, Roth IRA contributions phase out between $150,000–$165,000 for single filers and $236,000–$246,000 for married filing jointly. Above these limits, you cannot contribute directly to a Roth IRA — but the backdoor Roth strategy (contributing to Traditional then converting) remains available for high earners.

Which IRA grows faster — Roth or Traditional?+

Both grow at the same rate — the difference is entirely in taxes. Roth grows tax-free and withdrawals are tax-free. Traditional grows tax-deferred but withdrawals are taxed as ordinary income. If tax rates stay the same, they produce identical after-tax wealth. Roth wins if your future tax rate is higher; Traditional wins if lower.

What is a backdoor Roth IRA?+

A backdoor Roth IRA is a strategy for high earners who exceed the Roth income limits. You contribute to a Traditional IRA (non-deductible) then immediately convert it to a Roth IRA. This allows high earners to get money into a Roth account regardless of income. Consult a tax advisor as the pro-rata rule may apply if you have other Traditional IRA balances.

At what age must I take RMDs from my Traditional IRA?+

For Traditional IRAs, Required Minimum Distributions (RMDs) start at age 73 (as of the SECURE 2.0 Act). Roth IRAs have NO RMDs during the owner's lifetime — the money can keep growing tax-free indefinitely. This makes Roth particularly powerful for estate planning as heirs inherit the tax-free status (non-spouse heirs must distribute within 10 years under current law).

2026 IRA Limits & Rules

Contribution limit$7,000

Catch-up (50+)$8,000

Roth income limit (single)$165,000

Roth income limit (MFJ)$246,000

Traditional deductibilityIncome-based

Roth RMDsNone ✓

Traditional RMDs startAge 73

Early withdrawal penalty10% (<59½)

Decision Guide

→Young + low income — Roth almost always wins

→High income now — Traditional for immediate tax savings