Roth vs Traditional IRA Calculator 2026
Compare Roth and Traditional IRA projected values based on your tax situation and timeline.
✓ 2026 IRS limits — $7,000 (under 50) | $8,000 (age 50+)
Modified Adjusted Gross Income — affects Roth eligibility and Traditional deductibility
2026 max: $7,000 (under 50)
Your marginal federal rate today
Expected rate when withdrawing
Roth IRA vs Traditional IRA: What's the Difference?
The key difference between a Roth IRA and a Traditional IRA is when you pay tax. With a Traditional IRA, contributions may be tax-deductible now, but withdrawals in retirement are taxed as ordinary income. With a Roth IRA, contributions are made with after-tax dollars, but qualified withdrawals in retirement are completely tax-free. Which is better depends primarily on whether your tax rate is higher now or in retirement.
2026 IRA Comparison at a Glance
| Feature | 🔵 Roth IRA | 🟢 Traditional IRA |
|---|---|---|
| 2026 Limit (under 50) | $7,000 | $7,000 |
| 2026 Limit (age 50+) | $8,000 | $8,000 |
| Tax on contributions | After-tax (no deduction) | May be deductible |
| Tax on growth | Tax-free | Tax-deferred |
| Tax on withdrawal | None (qualified) | Ordinary income tax |
| Income limit | Yes (phase-out applies) | No limit to contribute |
| Required Minimum Distributions | None | From age 73 |
| Early withdrawal penalty | 10% (before 59½) | 10% (before 59½) |
Source: IRS Publication 590-A (2026). Rules are complex — verify with a tax professional.
Frequently Asked Questions
Should I choose Roth or Traditional IRA?
A common rule of thumb: if you expect to be in a higher tax bracket in retirement than you are now, Roth may be more advantageous. If you expect to be in a lower bracket, Traditional may save more overall. Young earners early in their careers often favour Roth; higher earners approaching peak salary may lean Traditional. This is a personal decision with many variables — a financial adviser can help model your specific situation.
What is the 2026 Roth IRA income limit?
For 2026, single filers can contribute to a Roth IRA if their MAGI is below $150,000 (phase-out begins). The ability to contribute phases out completely at $165,000. For married filing jointly, the phase-out range is $236,000 to $246,000. If your income exceeds these limits, a backdoor Roth IRA conversion may be an option — consult a tax adviser.
Can I contribute to both a Roth and Traditional IRA?
Yes, you can contribute to both in the same year, but your total combined contributions cannot exceed the annual limit ($7,000 under 50 / $8,000 age 50+ in 2026). For example, you could contribute $3,500 to each.
What is a backdoor Roth IRA?
A backdoor Roth IRA is a strategy used by high earners who exceed the Roth income limits. It involves making a non-deductible Traditional IRA contribution and then converting it to a Roth IRA. This is legal but involves tax complexities, particularly if you have other Traditional IRA balances (the pro-rata rule). Always consult a CPA or tax adviser before attempting this strategy.
What to work out next
⚠️ Disclaimer: Results are estimates only and do not constitute financial, tax, or legal advice. Tax laws change frequently — always verify with official sources (IRS, HMRC) and consult a qualified professional before making decisions.
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