The core difference is when you pay taxes. Here's how to decide which account type is right for you.
The choice between a Roth and Traditional IRA comes down to one question: do you think your tax rate will be higher now or in retirement? This comparison guide walks through the tax advantages, income limits, withdrawal rules, and RMD differences. Whether you're early in your career (Roth usually wins) or in your peak earning years (Traditional often wins), understanding the tradeoffs helps you make the right call for your situation.
Choose Roth if: You're early in your career, expect to make more money later, or expect taxes to go up. You also get the flexibility of penalty-free contribution withdrawals.
Choose Traditional if: You're in a high tax bracket now, expect to be in a lower bracket in retirement, or your income is too high for a Roth.
Best of both worlds: You can split your contribution — put some in each. Many people do both, depending on their tax situation each year.
"Roth is always better." Not if you're in a 35% tax bracket now and will be in 15% in retirement. The math depends on your current vs. future tax rate.
"I can't have both." You can. The contribution limit ($7,500 in 2026, $8,600 if 50+) applies to combined IRA contributions across all your IRAs.