Roth IRA vs Traditional IRA 2026
Which IRA is better for you in 2026? Compare tax-free Roth growth vs tax-deductible Traditional contributions with updated OBBBA limits.
— OBBBA rates
| Feature | Roth IRA | Traditional IRA |
|---|---|---|
| Tax on contributions | Pay taxes now (after-tax dollars) | Tax-deductible (pre-tax dollars) |
| Tax on withdrawals | Tax-FREE withdrawals in retirement | Taxed as ordinary income |
| 2026 contribution limit | $7,500 ($8,600 if 50+) | $7,500 ($8,600 if 50+) |
| Income limits (single) | Phase-out $153K-$168K | No income limit for contributions |
| Required Minimum Distributions | None during owners lifetime | Must begin at age 73 |
| Best if you expect | Higher tax bracket in retirement | Lower tax bracket in retirement |
| Early withdrawal penalty | Contributions: anytime. Earnings: 10% before 59½ | 10% before 59½ on all amounts |
| OBBBA impact | Income limits adjusted upward | Standard deduction increase benefits |
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