Del BaileyA Roth IRA is funded with after-tax money, so qualified withdrawals come out tax free. A traditional IRA may give you a deduction now, but withdrawals are taxed later. For 2026 both share one limit of $7,500, or $8,600 at age 50 or older, according to the IRS.
Published November 2, 2026.
Roth IRA vs traditional IRA difference
Here is how the two accounts line up for 2026.
| Roth IRA | Traditional IRA | |
|---|---|---|
| Tax on the money you put in | Not deductible | May be fully or partly deductible, depending on filing status and income |
| Tax on withdrawals | Qualified distributions are not taxed | Taxed as income when you take a distribution |
| 2026 contribution limit | $7,500 ($8,600 at 50 or older), shared with your traditional IRA | $7,500 ($8,600 at 50 or older), shared with your Roth IRA |
| Income rule | Contributions shrink and then stop at higher income | No income cap on contributing; income and workplace coverage affect the deduction |
| Withdrawals before 59½ | Not qualified unless another test is met, such as disability or a first home | 10% additional tax generally applies unless an exception fits |
| Required withdrawals | None for the original owner | Begin by April 1 after the year you reach 73 |
| Age limit to contribute | None | None |
After years of keeping a household budget, I notice one pattern. People read two columns, decide they must pick the perfect one, and open neither. Reading the rules is the easy part. The choice depends on numbers only you have. So I stick to what the IRS publishes and leave the deciding to you and a professional.
Opening the account is one money habit among many. Banking adjustments such as automatic transfers can make a yearly contribution easier to keep up.
Roth IRA vs traditional IRA taxes
The IRS says you cannot deduct contributions to a Roth IRA. In return, qualified distributions from it are not included in your income, per the IRS Roth IRA page.
A traditional IRA works the other way around. Your contributions may be fully or partially deductible, depending on your filing status and income, and the IRS says the money is not taxed until you take a distribution.
If you or your spouse is covered by a retirement plan at work, the deduction may be limited. The IRS says it is allowed in full if neither of you is covered.
IRA contribution limits
The IRS sets the 2026 IRA limit at $7,500. At 50 or older the total is $8,600, which is a $1,100 catch-up. For 2025 the figures were $7,000 and $8,000.
The limit covers all your traditional and Roth IRAs combined, not each one. It also cannot be more than your taxable compensation for the year, with one exception: on a joint return, a spouse without income can still contribute if the other spouse has enough, per the IRS.
Workplace plans such as a 401(k) have their own, higher limits.
Contributions for a tax year can be made until the return’s due date, not counting extensions, according to IRS Publication 590-A. For most people that date is April 15, which puts the 2026 deadline at April 15, 2027.
Roth IRA vs traditional IRA income limits
Income matters in different places for each account. For a Roth IRA, it decides how much you can contribute. For a traditional IRA, it decides how much you can deduct when a workplace plan is in the picture. The IRS published these 2026 ranges, based on modified adjusted gross income.
| 2026 modified AGI | Roth IRA contribution is reduced and then ends | Traditional IRA deduction is reduced and then ends |
|---|---|---|
| Single or head of household | $153,000 to $168,000 | $81,000 to $91,000 if covered by a workplace plan |
| Married filing jointly | $242,000 to $252,000 | $129,000 to $149,000 if the contributing spouse is covered; $242,000 to $252,000 if only the other spouse is |
| Married filing separately | $0 to $10,000 | $0 to $10,000 if covered by a workplace plan |
Inside a range the amount is reduced, and above it the Roth contribution is not allowed. The IRS notes that the $10,000 cutoff for separate filers is not adjusted for inflation.
Last year’s ranges were lower. For 2025 the single Roth range was $150,000 to $165,000. These are 2026 figures, and the IRS resets most of them each year, so check irs.gov for the 2027 set when it appears.
Roth IRA vs traditional IRA withdrawal rules
For a Roth IRA, a distribution is qualified when the account has been open at least five years and the money comes out after age 59½, because of disability or death, or for a first-time home purchase, per the IRS Roth comparison chart. The IRS says the original owner never has to take distributions, whatever their age.
The IRS says the 10% additional tax generally applies to any IRA withdrawal before age 59½. It lists exceptions, including up to $10,000 for a qualified first home, up to $5,000 per child for a birth or adoption, and an emergency expense of up to $1,000 once per calendar year. Domestic abuse victims can take the lesser of $10,000 or half the account.
A traditional IRA has a start date for required withdrawals. The IRS says they begin by April 1 of the year after you reach 73, and by December 31 each year after that. Whoever you name as a beneficiary matters too, and beneficiaries of a Roth IRA may have to take distributions. It is one of the estate planning basics worth reading alongside this.
Can you have a Roth IRA and a traditional IRA
Yes. The IRS says the annual limit applies to the total you put into all of your Roth and traditional IRAs. Someone with both can split the $7,500 any way they like, but cannot contribute $7,500 to each.
A Roth IRA must be set up as a Roth from the start, per the IRS. So the practical question is how to divide one limit between two kinds of tax treatment. The income ranges above still apply to the Roth side.
Which IRA rules apply to you
Two IRS rules settle part of the question before anything else. Above the ranges in the income table, a Roth contribution shrinks and then ends. A traditional IRA deduction shrinks when you or your spouse is covered by a workplace plan and your income sits in its range.
The rest depends on your own tax picture, now and later. That is a question for a financial or tax professional who can see your numbers. Questions about a 529 savings plan for school costs belong in that conversation too, as does a monthly budget with room for both.
Frequently asked questions about Roth and traditional IRAs
Is a Roth IRA better than a traditional IRA?
Neither is better for everyone. A Roth IRA gives tax-free qualified withdrawals and no required withdrawals for the owner. A traditional IRA may give a deduction now. The IRS rules decide what you are allowed, and a professional can weigh your own numbers.
What if you make too much for a Roth IRA?
The IRS reduces the allowed Roth contribution inside the income range and ends it above the range. For 2026 that range is $153,000 to $168,000 for single filers and $242,000 to $252,000 for joint filers. The IRS says excess contributions can be withdrawn by the return’s due date, including extensions, to avoid the 6% tax.
Can you contribute to an IRA after 70?
Yes. Publication 590-A says the old age cutoff for traditional IRA contributions was repealed for tax years beginning after 2019. A Roth IRA has no age limit either. You still need taxable compensation, or a spouse who has it on a joint return.
Do Roth IRAs have required minimum distributions?
Not for the original owner. The IRS says an original Roth IRA owner does not have to take distributions regardless of age. A traditional IRA owner must begin by April 1 of the year after reaching 73.
When is the deadline to contribute to an IRA?
The due date of your tax return for that year, not counting extensions, per Publication 590-A. For most people that is April 15, so 2026 contributions can be made until April 15, 2027.
This article is for general information only and is not financial advice. Talk to a licensed financial or tax professional about your own situation.
Jim Owen
