Roth vs Traditional IRA: the Roth wins more often than you think.
A 2026 decision register for Americans choosing between Roth and Traditional IRAs. Every contribution limit and income phase-out on this page is sourced from IRS Publication 590-A and IRS Notice 2025-67. Real dollar projections, the IRS phase-out tables verbatim, and the specific cases where Traditional actually beats Roth.
Authority feed last verified 2026-06-14. Next IRS COLA notice expected 2026-11-10. Full methodology · Not investment advice
The three-line verdict
Most filers under 50, brackets up to 24 percent
Tax-free compounding for 30 plus years under 26 U.S.C. § 408A(d)(2), no lifetime RMDs per IRS Publication 590-B, contributions can be withdrawn anytime tax-free per IRS Publication 590-A ordering rules. The default winner for the under-50 crowd.
Peak earners in 32, 35, or 37 percent brackets
Take the deduction under 26 U.S.C. § 219 now (subject to the workplace-plan phase-out), then convert to Roth in low-income retirement years before age 73 RMDs kick in per SECURE 2.0 § 107. Bracket-fill the conversion.
Single MAGI above $168K or MFJ above $252K
Direct Roth contributions are off the table at these income levels per IRS Publication 590-A Table 2-1, but a non-deductible Traditional contribution converted immediately is permitted. Mind the pro-rata rule under 26 U.S.C. § 408(d)(2). File IRS Form 8606.
2026 IRA limits, sourced from IRS Notice 2025-67
The IRS sets the contribution and phase-out limits each November via an annual Cost-of-Living-Adjustment notice authorised by 26 U.S.C. § 415(d). The 2026 figures below come from IRS Notice 2025-67 published 2025-11-13 and are reflected in the latest revision of IRS Publication 590-A (Tables 1-2 and 2-1). Last verified on this site: 2026-06-14.
- Single / Head of household
- $153K to $168K
- Married filing jointly
- $242K to $252K
- Married filing separately
- $0 to $10K
Statutory authority: 26 U.S.C. § 408A(c)(3). Phase-outs apply to modified adjusted gross income (MAGI) per IRS Pub 590-A definition.
- Single, active participant
- $81K to $91K
- MFJ, both active
- $129K to $149K
- MFJ, spouse active only
- $242K to $252K
- Neither active
- No phase-out
Statutory authority: 26 U.S.C. § 219(g). "Active participant" means covered by a workplace retirement plan per IRS Pub 590-A definition.
Every contribution limit, income phase-out, deduction threshold, and required-minimum-distribution age on this page is sourced from IRS Publication 590-A (Contributions to Individual Retirement Arrangements) and IRS Notice 2025-67. Data last verified 2026-06-14. The IRS publishes the next annual cost-of-living-adjustment notice on or around 2026-11-10; this page rebuilds automatically when the notice is parsed and the JSON snapshot is refreshed.
Primary sources cited on this page: IRS Notice 2025-67, IRS Publication 590-A, IRS Publication 590-B, 26 U.S.C. § 408A, 26 U.S.C. § 219, SECURE 2.0 Act § 107.
Methodology and full source ledger · Disclaimer (not investment advice)
Roth vs Traditional IRA calculator
Enter your numbers. The calculator reinvests the Traditional upfront tax deduction at the same return rate, then taxes the withdrawal at your expected retirement bracket per the mechanics in IRS Publication 590-B. Roth wins whenever the two brackets are equal or rising.
| Years contributing | 35 |
| Total contributed | $262,500 |
| Gross balance at retirement | $1,036,777 |
| Same-dollar Traditional after withdrawal tax(Without reinvesting the deduction) | $787,950 |
The Traditional figure assumes you reinvest the upfront tax deduction at the same return and pay tax at the expected retirement rate. Without reinvesting the deduction, Traditional ends at $788K. Roth wins whenever your retirement rate is equal to or higher than your current rate, even before reinvesting the deduction.
Side-by-side, every difference that matters
| Feature | Roth IRA | Traditional IRA |
|---|---|---|
| 2026 contribution limit (IRS Notice 2025-67) | $7,500 ($8,600 if 50 plus) per Pub 590-A Table 2-1 | $7,500 ($8,600 if 50 plus) per Pub 590-A Table 1-1 |
| Tax now (deduction under 26 U.S.C. § 219) | No deduction; contribute after-tax dollars | Deduction available; subject to active-participant phase-out per Pub 590-A Table 1-2 |
| Tax at qualified withdrawal | Zero tax on contributions, growth, or earnings per 26 U.S.C. § 408A(d)(2) (after 59.5 + 5-year rule) | Every dollar taxed as ordinary income per IRS Pub 590-B |
| 2026 MAGI phase-out (MFJ) | $242K to $252K; above that use the backdoor (Pub 590-A Table 2-1) | $129K to $149K when both spouses have a workplace plan (Pub 590-A Table 1-2) |
| Required minimum distributions | None during owner's lifetime per IRS Pub 590-B (no lifetime RMD) | Begin at age 73 (born 1951-1959) or 75 (born 1960 plus) per SECURE 2.0 § 107 |
| Early withdrawal (before 59.5) | Contributions can be withdrawn anytime per Pub 590-A ordering rules; earnings: 10 percent penalty + tax | 10 percent penalty plus income tax per IRC § 72(t); limited exceptions in Pub 590-B |
| Inheritance (non-spouse heirs) | 10-year rule per SECURE Act § 401(a)(9)(H); zero income tax | 10-year rule; ordinary income tax on every dollar per Pub 590-B |
| Best when your tax rate now is... | Equal to or lower than your retirement rate (per OBBBA permanent brackets) | Higher than your expected retirement rate |
| Backdoor option for high earners | Yes; non-deductible Traditional contribution then converted; file Form 8606 | Not applicable |
Every cell traces to IRS Publication 590-A, IRS Publication 590-B, or IRS Notice 2025-67. Highlighted cell shows the structural advantage.
The math that matters: $7,500 a year for 35 years
The argument for Roth lives or dies on a single chart. Contribute the IRS Publication 590-A maximum ($7,500 a year per IRS Notice 2025-67) from age 30 to 65 at a 7 percent annual return. The gross balance is identical: about $968,000. What you get to keep is not.
| Withdrawal rate | Traditional kept | Roth advantage |
|---|---|---|
| 12% | $912K | +$124K |
| 22% | $809K | +$228K |
| 24% | $788K | +$249K |
| 32% | $705K | +$332K |
Withdrawal-rate column is the marginal bracket on Traditional withdrawals at retirement, taxed as ordinary income under IRS Publication 590-B distribution rules. Roth qualified distributions are tax-free per 26 U.S.C. § 408A(d)(2). Numbers assume the upfront Traditional deduction is consumed (not reinvested). When the deduction is reinvested at 7 percent, the gap narrows but Roth still wins whenever the retirement rate is equal to or higher than the rate at contribution.
IRA contribution limits, 2014 through 2026
The IRS adjusts the IRA contribution limit each year by rule under 26 U.S.C. § 219(b)(5)(C). The full series, with the IRS Notice that set each year's limit:
| Tax year | Under 50 | 50 plus | Roth phase-out (single) | IRS Notice |
|---|---|---|---|---|
| 2014 | $5,500 | $6,500 | $114K to $129K | IRS Notice 2013-73 |
| 2015 | $5,500 | $6,500 | $116K to $131K | IRS Notice 2014-99 |
| 2016 | $5,500 | $6,500 | $117K to $132K | IRS Notice 2015-75 |
| 2017 | $5,500 | $6,500 | $118K to $133K | IRS Notice 2016-62 |
| 2018 | $5,500 | $6,500 | $120K to $135K | IRS Notice 2017-64 |
| 2019 | $6,000 | $7,000 | $122K to $137K | IRS Notice 2018-83 |
| 2020 | $6,000 | $7,000 | $124K to $139K | IRS Notice 2019-59 |
| 2021 | $6,000 | $7,000 | $125K to $140K | IRS Notice 2020-79 |
| 2022 | $6,000 | $7,000 | $129K to $144K | IRS Notice 2021-61 |
| 2023 | $6,500 | $7,500 | $138K to $153K | IRS Notice 2022-55 |
| 2024 | $7,000 | $8,000 | $146K to $161K | IRS Notice 2023-75 |
| 2025 | $7,000 | $8,000 | $150K to $165K | IRS Notice 2024-80 |
| 2026 (current) | $7,500 | $8,600 | $153K to $168K | IRS Notice 2025-67 |
Source: every row traces to the IRS Notice listed. Pulled from IRS COLA Increases page and IRS Publication 590-A archive editions.
Five-question decision register
- 1Step
What is your marginal tax rate today?
If 24 percent or below per the 2026 brackets, Roth is the working assumption. If 32 percent or above, Traditional has a near-term case (subject to the Pub 590-A deduction phase-out).
Income limits → - 2Step
What rate do you expect at retirement?
If equal or higher than today, Roth wins under 26 U.S.C. § 408A(d)(2). Traditional needs a sustained drop in your bracket.
- 3Step
Are you above the Roth income limit?
Single $168K or MFJ $252K MAGI per Pub 590-A Table 2-1. Above that, direct Roth is closed and you go through the backdoor.
Backdoor Roth → - 4Step
Do you have an existing pre-tax IRA?
Pro-rata rule under 26 U.S.C. § 408(d)(2) applies to backdoor conversions. Roll pre-tax IRA into a 401(k) first if possible.
Pro-rata rule → - 5Step
Are you near retirement with a Traditional balance?
Look at multi-year Roth conversions during low-income gap years to bracket-fill before age 73 RMDs (SECURE 2.0 § 107).
Conversion strategy →
The full register
Year-by-year projection per Pub 590-A worksheet logic, scenario presets, tax-impact ledger.
Projection tables by starting age and withdrawal rate; cites 26 U.S.C. § 408A(d)(2).
Roth phase-outs (Pub 590-A Table 2-1), Traditional deduction phase-outs (Table 1-2), MAGI rules.
$7,500 base per IRS Notice 2025-67, catch-up, deadlines, spousal IRA, employer plan interaction.
Bracket-filling math, IRMAA cliffs, multi-year strategy, IRS Form 8606 filing.
Standard backdoor and mega backdoor (per IRS Notice 2014-54), 2026 numbers, pro-rata math.
IRS Pub 590-B: 5-year rule, RMDs (SECURE 2.0 § 107), early-withdrawal exceptions, inheritance.
Once funded under Pub 590-A, what to actually hold. Three sensible portfolios.
Source ledger: IRS publications, IRC sections, refresh cadence, verification dates.
Related decisions, sibling sites
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ETF vs index mutual fund head-to-head. The two wrappers are functionally equivalent inside a Roth IRA.
HSA vs Roth IRA, the triple-tax-advantage account vs the after-tax-then-tax-free account. IRS Publication 969 governs the HSA side.
Unused 529 plan funds can be rolled to the beneficiary's Roth IRA starting 2024 per IRS Notice 2024-2 and SECURE 2.0 § 126.
Frequently filed questions
Is it better to have a Roth or Traditional IRA?
For most filers under 50 in the 24 percent bracket or below, Roth wins. The 2026 brackets are the lowest in modern history under OBBBA, the deduction value under 26 U.S.C. § 219 is small at lower brackets, and the combination of tax-free compounding (per 26 U.S.C. § 408A(d)(2)), no lifetime RMDs (per IRS Publication 590-B), and tax-free inheritance is hard to beat. Traditional has a clear case only if your current rate (32 percent or higher) is meaningfully above your expected retirement rate.
What are the 2026 Roth IRA income limits?
Per IRS Notice 2025-67 and IRS Publication 590-A Table 2-1, single and head-of-household filers phase out between $153,000 and $168,000 MAGI. Married filing jointly phase out between $242,000 and $252,000. Married filing separately phase out from $0 to $10,000. Above the upper bound, direct Roth contributions are not allowed; use the backdoor.
Can I contribute to both a Roth and a Traditional IRA?
Yes, but per 26 U.S.C. § 408A(c)(2) and IRS Publication 590-A, the combined limit across all your IRAs is $7,500 in 2026 ($8,600 if 50 or over). Example: $4,000 to Roth plus $3,500 to Traditional totals $7,500 and is allowed. $7,500 to each is an excess contribution subject to the 6 percent annual penalty under IRC § 4973 (reported on IRS Form 5329).
How much tax does a Roth IRA actually save?
A Roth makes no upfront tax difference under IRS Publication 590-A. The lifetime saving is on the growth: $7,500 a year at 7 percent for 35 years is roughly $968,000 gross. In a Traditional taxed at 22 percent on withdrawal per IRS Publication 590-B, you keep about $755,000. The Roth advantage is roughly $213,000, all tax-free per 26 U.S.C. § 408A(d)(2).
Do Roth IRAs have required minimum distributions?
No. Per IRS Publication 590-B, Roth IRAs have no required minimum distributions during the original owner's lifetime under 26 U.S.C. § 408A(c)(5). Traditional IRAs require RMDs starting at age 73 (born 1951-1959) or age 75 (born 1960 or later) under SECURE 2.0 Act § 107.
Should I convert my Traditional IRA to Roth?
Often, yes, but the timing matters. Best windows per IRS Publication 590-A conversion rules: low-income years (career break, early retirement before Social Security), market downturns, before RMDs at 73. Watch for IRMAA Medicare surcharges at MAGI over $109K single or $218K MFJ (2026, based on 2024 MAGI). Convert in tranches that bracket-fill rather than all at once. File IRS Form 8606 to report the conversion.
What is the backdoor Roth IRA?
Per IRS Publication 590-A and 26 U.S.C. § 408A(d)(3), high earners above the Roth direct-contribution income limit can make a non-deductible Traditional IRA contribution under 26 U.S.C. § 408(o) and then convert it to a Roth. The conversion is reported on IRS Form 8606. Watch the pro-rata rule under 26 U.S.C. § 408(d)(2): if you have pre-tax balances in any Traditional, SEP, or SIMPLE IRA, those pro-rate the conversion.
Are these limits final or projected?
Final. IRS Notice 2025-67 was published 2025-11-13 and the 2026 figures are reflected in the most recent revision of IRS Publication 590-A. Last verified on this site: 2026-06-14. We re-verify quarterly via the automated hash-check pipeline; see our methodology page.