Roth vs Traditional IRA: full comparison (2026, IRS-sourced)
Both accounts offer tax advantages. The difference is when you pay the tax. Every figure on this page is sourced from IRS Publication 590-A, IRS Publication 590-B, and IRS Notice 2025-67. Last verified 2026-06-14.
Tax Treatment (IRS Pub 590-A / 590-B)
You contribute after-tax dollars per 26 U.S.C. § 408A. Money grows tax-free. Qualified withdrawals in retirement are 100% tax-free, including all growth, per 26 U.S.C. § 408A(d)(2).
You contribute pre-tax dollars per 26 U.S.C. § 219 (subject to the active-participant phase-out in Pub 590-A Table 1-2). Money grows tax-deferred. Every dollar withdrawn in retirement is taxed as ordinary income per IRS Publication 590-B.
Contribution Limits (IRS Notice 2025-67, tax year 2026)
$7,500/year base, $8,600 with the 26 U.S.C. § 414(v) catch-up at age 50, per IRS Publication 590-A Table 2-1.
Same: $7,500/year base, $8,600 with catch-up. Combined limit applies across all IRAs per 26 U.S.C. § 408A(c)(2).
Income Eligibility (Pub 590-A Tables 1-2 / 2-1)
Single filers with MAGI above $168K and married filing jointly above $252K cannot contribute directly per Pub 590-A Table 2-1. The Backdoor Roth strategy under 26 U.S.C. § 408A(d)(3) gets around this; file IRS Form 8606.
Anyone with earned income can contribute under 26 U.S.C. § 219. The deduction phases out for those with workplace plans: $81K-$91K single, $129K-$149K MFJ per IRS Notice 2025-67 and Pub 590-A Table 1-2.
Required Minimum Distributions (SECURE 2.0 § 107)
No RMDs during the original owner's lifetime per 26 U.S.C. § 408A(c)(5) and IRS Publication 590-B. You decide when and how much to withdraw. Your heirs can let the money grow for up to 10 more years under the SECURE Act 10-year rule.
RMDs start at age 73 for individuals born 1951-1959 or age 75 for those born 1960 plus per SECURE 2.0 § 107. The IRS calculates the minimum each year using the Uniform Lifetime Table in IRS Publication 590-B. Failure triggers a 25 percent excise tax under 26 U.S.C. § 4974(a), reduced to 10 percent if corrected.
Early Withdrawal Flexibility (Pub 590-A ordering rules + 26 U.S.C. § 72(t))
Per IRS Publication 590-A ordering rules, your contributions (not earnings) can be withdrawn at any age, any reason, with no taxes and no penalty. Earnings are subject to the 10 percent penalty under 26 U.S.C. § 72(t) before age 59.5.
All withdrawals before age 59.5 are subject to the 10 percent early-withdrawal penalty under 26 U.S.C. § 72(t)(1) plus ordinary income tax. Exceptions in 26 U.S.C. § 72(t)(2) and IRS Publication 590-B include first-time home purchase ($10K), higher education, disability, and substantially-equal-periodic-payments (SEPP, 72(t)).
Impact on Heirs (SECURE Act 10-year rule, 26 U.S.C. § 401(a)(9)(H))
Heirs inherit a Roth IRA tax-free per IRS Publication 590-B. Under the SECURE Act 10-year rule codified at 26 U.S.C. § 401(a)(9)(H), non-spouse beneficiaries must withdraw the full amount within 10 years but pay no income tax on distributions.
Per IRS Publication 590-B, heirs inherit the tax burden along with the account. Non-spouse beneficiaries withdraw within 10 years and every dollar is taxed as their ordinary income. A large Traditional IRA inherited by a high-earning child could be taxed at 37 percent under the 2026 brackets.