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Roth vs. traditional IRA

Both IRAs share one contribution limit. The difference is when you pay tax: a traditional IRA may give you a deduction now and taxes withdrawals later; a Roth IRA gives no deduction now but qualified withdrawals are tax-free.

By PickedFinance Editorial TeamLast updated

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How this page was made: it’s built from each provider’s own terms, rate and fee pages and from regulator sources, all listed at the bottom. We haven’t opened these accounts or products to test them, and we don’t give scores. Every rate shows the day we checked it. Our methodology.

Quick answer

Short answer: for 2026 you can put up to $7,500 ($8,600 if 50 or older) across all your IRAs, per the IRS. Choose Roth if you expect a higher tax rate later and your income is under the phase-out ($153,000–$168,000 single; $242,000–$252,000 married filing jointly). Choose traditional if a deduction now is worth more. This isn’t tax advice.

Last updated

All figures come from IRS[1][2][3] pages and IRS Notice 2025-67 (2026 cost-of-living amounts), read on Nov 10, 2026. Tax rules have exceptions this page doesn’t cover; for your own situation, ask a tax professional.

At a glance

Roth vs. traditional IRA, 2026 (IRS)
Traditional IRARoth IRA
2026 contribution limit$7,500 total across all IRAs ($8,600 if 50+), or your taxable compensation if lessSame shared limit
Tax break nowYou can deduct contributions if you qualifyContributions aren’t deductible
WithdrawalsDeductible contributions and earnings are taxable when withdrawnQualified distributions are tax-free
Income limit to contributeNone to contribute; the deduction phases out if you (or your spouse) have a workplace planPhase-out: $153,000–$168,000 single/head of household; $242,000–$252,000 married filing jointly
Required minimum distributionsRequired starting at age 73Not required while the owner is alive
Early withdrawalsUnder 59½, may owe an additional 10% tax unless an exception appliesRules differ for contributions and earnings; check IRS rules

2026 contribution limits

The IRS[1][2][3] says that for 2026, total contributions to all your traditional and Roth IRAs can’t be more than $7,500 ($8,600 if you’re age 50 or older), or your taxable compensation for the year if that’s less. The limit is shared: $4,000 to a Roth and $3,500 to a traditional IRA uses the whole $7,500.

Roth IRA income limits for 2026

IRS[1][2][3] Notice 2025-67 sets the 2026 Roth IRA phase-out ranges by modified adjusted gross income: $153,000 to $168,000 for single filers and heads of household, $242,000 to $252,000 for married couples filing jointly, and $0 to $10,000 for married filing separately. Within the range you can contribute a reduced amount; above it, you can’t contribute directly to a Roth IRA.

When traditional IRA contributions are deductible

Anyone with compensation can contribute to a traditional IRA, but the deduction phases out if you’re covered by a workplace retirement plan. For 2026 the phase-out is $81,000 to $91,000 for single filers and heads of household who are active participants, and $129,000 to $149,000 for married couples filing jointly when the contributing spouse is covered. If you’re not covered but your spouse is, it’s $242,000 to $252,000.

How to choose

  • Expect a higher tax rate in retirement (for example, early in your career): a Roth lets you pay tax now at today’s rate.
  • Expect a lower rate later, or need the deduction to afford contributing: a deductible traditional IRA may come out ahead.
  • Not sure? You can split contributions between both, within the shared limit.
  • Don’t want required withdrawals: the IRS[1][2][3] says RMD rules don’t apply to Roth IRAs while the owner is alive.

Who should skip this

  • Your employer matches 401(k) contributions and you aren’t getting the full match yet. A match is money your employer adds on top of yours; check your plan’s rules before prioritizing an IRA.
  • You’ll need this money in the next few years. Early withdrawals can trigger taxes and a 10% additional tax; use savings instead.

Frequently asked questions

How much can I put in an IRA for 2026?
Up to $7,500 total across all traditional and Roth IRAs, or $8,600 if you’re 50 or older, or your taxable compensation if less, according to the IRS[1][2][3].
What are the 2026 Roth IRA income limits?
The phase-out ranges are $153,000–$168,000 for single and head of household filers and $242,000–$252,000 for married filing jointly (IRS[1][2][3] Notice 2025-67).
Can I have both a Roth and a traditional IRA?
Yes. The IRS[1][2][3] limit applies to the total you put into all your traditional and Roth IRAs combined.
Do Roth IRAs have required minimum distributions?
Not while the owner is alive. The IRS[1][2][3] says RMD rules don’t apply to Roth IRAs or designated Roth accounts during the owner’s lifetime. Traditional IRA owners must start RMDs at age 73.
Where do I open an IRA?
At a brokerage or robo-advisor. Schwab, for example, lists $0 opening and maintenance fees and $0 minimums for IRAs. See best brokerage accounts for beginners.

Sources

Every source below was opened and read for this page. Providers’ own pages are labeled with the provider’s name; regulator pages are labeled with the agency. Rates and terms change often, so confirm on the provider’s site before you apply.

  1. IRS: Retirement topics — IRA contribution limits (irs.gov, checked Nov 10, 2026)
  2. IRS Notice 2025-67: 2026 retirement plan and IRA amounts (irs.gov, checked Nov 10, 2026)
  3. IRS: Traditional and Roth IRAs (irs.gov, checked Nov 10, 2026)
  4. IRS: Roth IRAs (irs.gov, checked Nov 10, 2026)
  5. IRS: Required minimum distributions FAQs (irs.gov, checked Nov 10, 2026)
  6. Schwab: Pricing (schwab.com, checked Nov 10, 2026)
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