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Compare after-tax retirement wealth side by side: Roth IRA contributions are made with after-tax dollars and grow tax-free; Traditional IRA contributions are pre-tax and taxed on withdrawal.
Quick answer: The 2026 IRA contribution limit per IRS Notice N-25-67: $7,500 (up from $7,000 in 2025); catch-up at age 50+ is $1,100, bringing the total to $8,600. Roth IRA income phaseouts (2026): single $153,000-$168,000, married filing jointly $242,000-$252,000. Mathematically, Roth and Traditional produce identical after-tax wealth when current and retirement marginal tax rates are equal; Roth wins when retirement rate is higher, Traditional wins when retirement rate is lower.
📋 Educational tool only. Not financial, tax, or investment advice. Consult a qualified tax professional or financial planner for personalised guidance.
Roth IRA
$890,811
100% tax-free
RecommendedTraditional IRA
$783,914
After retirement tax at 12.0%
50/50 Split
$837,363
Tax diversification
Based on your inputs, Roth IRA produces $106,897 more in after-tax retirement wealth. You pay taxes now at 22.0% and enjoy completely tax-free withdrawals later. With 33 years of tax-free compounding, the Roth advantage is significant at your income level.
Current Marginal Rate
22.0%
Retirement Tax Rate
12.0%
Break-Even Rate
22.0%
Traditional Tax Saving/yr
$1,540
Richify AI can build a step-by-step contribution plan that coordinates your IRA, 401(k), and HSA to maximise all three simultaneously.
Plan Your IRA Strategy with Richify AI — 7-day free trial| Account | Under 50 | 50+ | Income Limit (Single) | Income Limit (MFJ) |
|---|---|---|---|---|
| Traditional IRA | $7,500 | $8,600 | No limit (deduction phaseout applies) | No limit |
| Roth IRA | $7,500 | $8,600 | $153K–$168K phaseout | $242K–$252K phaseout |
Head of household uses the single $153K–$168K Roth range. Married filing separately is $0–$10K if you lived with your spouse at any time in 2026; the single range applies if you lived apart all year. The calculator reads your marginal rate off taxable income, after the 2026 standard deduction ($16,100 single or separate, $24,150 head of household, $32,200 joint).
| Rate | Single | Married Filing Jointly |
|---|---|---|
| 10% | $0 – $12,400 | $0 – $24,800 |
| 12% | $12,401 – $50,400 | $24,801 – $100,800 |
| 22% | $50,401 – $105,700 | $100,801 – $211,400 |
| 24% | $105,701 – $201,775 | $211,401 – $403,550 |
| 32% | $201,776 – $256,225 | $403,551 – $512,450 |
| 35% | $256,226 – $640,600 | $512,451 – $768,700 |
| 37% | $640,601+ | $768,701+ |
If your income exceeds Roth IRA limits, you can still get money into a Roth through the “backdoor” strategy: contribute to a non-deductible Traditional IRA (there is no income limit for non-deductible contributions), then immediately convert to a Roth IRA. The conversion itself is a taxable event, but if you have no other pre-tax IRA balances, there is nothing to tax (you already paid tax on the contribution).
The pro-rata rule: If you have existing pre-tax Traditional IRA balances, the IRS treats all your Traditional IRAs as one pool. A partial conversion will be taxed proportionally based on pre-tax vs after-tax money in all your IRAs. This is the most common Backdoor Roth pitfall — consult a tax professional.
Traditional IRAs require Required Minimum Distributions (RMDs) starting at age 73 under SECURE Act 2.0. This forces you to withdraw — and pay taxes on — a percentage of your balance each year, whether you need the money or not. Roth IRAs have no RMDs during the owner's lifetime. This means your Roth balance can continue growing tax-free for as long as you live, and can be inherited by beneficiaries who withdraw tax-free (subject to the 10-year rule).
You do not have to choose once and for all. Converting Traditional money to a Roth in low-income years, such as the gap between leaving work and claiming Social Security, shrinks future RMDs; done every year, it becomes a Roth conversion ladder that early retirees use to reach their savings before 59½.
This calculator picks the IRA type. If your question is whether to fund your workplace plan or an IRA first, the 401(k) vs Roth IRA calculator sets the order: match, Roth IRA, then the rest of the 401(k).
Richify AI coordinates your IRA, 401(k), HSA, and taxable accounts into one unified retirement strategy. Free download — no financial advice given.
Download Richify — 7-day free trialThe right choice depends on your current vs expected retirement tax rate. If you expect to be in a higher tax bracket in retirement than today, Roth IRA wins — you pay taxes now at a lower rate and enjoy tax-free withdrawals later.
If you expect a lower tax bracket in retirement, Traditional IRA wins — you deduct contributions now at a higher rate and pay less tax on withdrawals. For most Americans in their 20s and 30s, Roth is advantageous because income (and tax rates) tend to rise over a career.
The 2026 IRA contribution limit is $7,500 for both Traditional and Roth IRAs (up from $7,000 in 2025). If you are age 50 or older, you can contribute an additional $1,100 catch-up contribution, for a total of $8,600.
This limit applies to the combined total across all your IRAs — you cannot contribute $7,500 to each.
For 2026, single filers can contribute the full amount with MAGI under $153,000. Contributions phase out between $153,000 and $168,000.
Married filing jointly: phase-out range is $242,000 to $252,000. Head of household uses the single range; married filing separately is $0 to $10,000 if you lived with your spouse at any time during the year.
Above these limits, you cannot contribute directly to a Roth IRA but can use the Backdoor Roth strategy.
If your income exceeds Roth IRA limits, you can contribute to a non-deductible Traditional IRA (no income limit) and then convert it to a Roth IRA. This is legal and widely used by high earners.
Be aware of the pro-rata rule if you have existing pre-tax Traditional IRA balances — the conversion will be partially taxable.
Yes — Traditional IRAs require Required Minimum Distributions (RMDs) starting at age 73 (under SECURE Act 2.0). Roth IRAs have no RMDs during the owner's lifetime.
This is a significant Roth advantage for high-net-worth individuals who don't need the money in retirement — it can continue growing tax-free indefinitely and be passed to heirs.
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