Roth vs Traditional IRA Calculator
Compare the after-tax accumulation of a Roth IRA vs. a Traditional IRA/401k to see which strategy saves you more money over your lifetime.
2026 IRA Contribution Limits & Income Phase-Outs
When planning your retirement strategy, it's crucial to stay updated on the latest IRS limits. For 2026, the anticipated baseline limits are:
- Standard Contribution Limit: $7,000 for individuals under age 50.
- Catch-Up Contributions: An additional $1,000 (total $8,000) if you are aged 50 or older. Starting in 2025/2026, those aged 60-63 have higher catch-up limits under SECURE 2.0 (up to $11,250 depending on indexing).
- Income Phase-Outs (Roth IRA): For 2026, the MAGI phase-out ranges are projected to be roughly $150,000 to $165,000 for single filers, and $240,000 to $250,000 for married filing jointly.
- Deductibility Phase-Outs (Traditional IRA): If you (or your spouse) are covered by a workplace retirement plan like a 401(k), your ability to deduct Traditional IRA contributions phases out. For 2026, this is projected to be around $79,000 to $89,000 for singles, and $126,000 to $146,000 for married filing jointly.
Note: Always consult the IRS website or a tax professional for the finalized figures as they are indexed for inflation and formally released late in the preceding year.
Frequently Asked Questions
Should I use a roth vs traditional ira calculator to decide?
Yes, using a calculator helps you visualize the long-term impact of taxes on your investments. It compares your current tax bracket with your expected retirement bracket to determine the optimal strategy.
How do I choose between a roth or traditional ira?
The choice generally depends on whether you expect your tax rate to be higher now (Traditional) or in retirement (Roth). If you expect to be in a higher tax bracket in retirement, a Roth IRA is usually better. If you expect a lower tax bracket in retirement, a Traditional IRA may be more beneficial.
Which ira is better for high income earners?
High income earners often benefit from a Traditional IRA because they are currently in a high tax bracket and will likely be in a lower bracket during retirement. However, high income earners may not be eligible to deduct Traditional IRA contributions or contribute directly to a Roth IRA, making a "Backdoor Roth" strategy popular.
What is the Roth IRA contribution limit for 2026?
For 2026, the contribution limit for both Roth and Traditional IRAs is expected to be updated by the IRS. Currently, standard limits apply, with catch-up contributions available for those aged 50 and older. Our calculator factors in the standard baseline.
Does a Roth IRA have required minimum distributions (RMDs)?
No, original owners of a Roth IRA are not required to take minimum distributions (RMDs) during their lifetime, unlike Traditional IRAs which require withdrawals starting at age 73 (or 75 depending on your birth year).