The core difference: Traditional IRA contributions are tax-deductible now; Roth IRA contributions are not. Both grow tax-free. The difference is when you pay income tax on the money.
The Tax Rate Question
If your current marginal tax rate is 22% and you expect to be in a lower bracket in retirement, a Traditional IRA (deduct contributions now, taxed later at a lower rate) wins. If your current rate is 32% and you expect to be in a higher bracket, a Roth (pay tax now at a lower rate, withdraw tax-free later) wins.
2026 Contribution Limits
Both IRAs share a $7,000 annual contribution limit ($8,000 if age 50+). You cannot contribute to both in the same year — it's $7,000 total, not $7,000 each.
Roth Income Limits
Roth IRA contributions are phased out at modified AGI $150,000–$165,000 for single filers and $236,000–$246,000 for married filing jointly. Above those thresholds, a backdoor Roth (non-deductible Traditional IRA contribution converted to Roth) is a common workaround. For tax filing guidance, TurboTax or similar IRA-compatible tax software can help model the difference for your specific bracket.
Required Minimum Distributions
Traditional IRAs force withdrawals starting at age 73 (SECURE Act 2.0). Roth IRAs have no RMDs during your lifetime — a major advantage for estate planning and leaving tax-free inheritances.