Published: 2026-08-15
This article provides general information for reference purposes only and does not constitute professional legal, tax, medical, or financial advice. Rules and programs may change. Always verify current details with official sources or consult a qualified professional.
What is the difference between traditional and Roth IRAs?
Traditional IRAs allow tax-deductible contributions, and withdrawals are taxed in retirement. Roth IRAs use after-tax contributions, and qualified withdrawals are tax-free. Your choice depends on your current and future tax situation.
Which is right for me?
Choose a traditional IRA if you expect to be in a lower tax bracket in retirement. Choose a Roth IRA if you expect to be in a higher bracket or want tax-free withdrawals. Consider your current tax rate and future plans.
What are the contribution limits?
The 2026 IRA contribution limit is $7,000, with a $1,000 catch-up for those 50 and older. You can contribute to both a traditional and Roth IRA, but the combined limit applies.