Roth IRA vs Traditional IRA 2026: Which Saves You More in Taxes?
The Roth IRA vs Traditional IRA debate is older than most retirement accounts. But the 2026 tax landscape — with new contribution limits, income phase-outs, and looming TCJA expiration — has shifted the math meaningfully. The “right” answer depends on three numbers most people get wrong. Here’s how to figure out which account actually saves you more, with real numbers for 2026. At a glance: 2026 numbers Feature Roth IRA Traditional IRA 2026 contribution limit $7,000 ($8,000 if 50+) $7,000 ($8,000 if 50+) Tax treatment of contributions After-tax Pre-tax (deductible if eligible) Tax treatment of withdrawals Tax-free in retirement Taxed as ordinary income Income phase-out (single) $150,000–$165,000 $77,000–$87,000 (with workplace plan) Income phase-out (married) $236,000–$246,000 $123,000–$143,000 (with workplace plan) Required Minimum Distributions None Yes, starting age 73 Early withdrawal of contributions Allowed (anytime, tax-free) 10% penalty if under 59½ 5-year rule on earnings Yes No (already pre-tax) 1. The core tax tradeoff in plain English A Traditional IRA gives you a tax deduction now and taxes your withdrawals later. A Roth IRA doesn’t give you a deduction now, but withdrawals are tax-free. ...