Roth IRA vs. Traditional IRA 

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Traditional IRA

Roth IRA

Minimum to open None None
Account Fees & Minimums Vary based on investment choices Vary based on investment choices
Who Can Contribute Anyone, at any age, with earned income or whose spouse has earned income Anyone, at any age, with earned income or whose spouse has earned income 2026 maximum income $168,000 (filing single) or $252,000 (filing joint)
Contribution Limits - 2026 Under 50: $7,500 Over 50: $8,600 Under 50: $7,500 Over 50: $8,600
Tax Advantages Contributions may be tax-deductible, deduction may be reduced based on tax filing status, income level, and participation in a workplace retirement plan. Earnings remain invested tax-deferred Taxes are due at the time of distribution/withdrawal Contributions are made after-tax Earnings remain invested tax-free Qualified withdrawals are tax-free in retirement
Investments Products Mutual funds Stocks Bonds ETFs Other Mutual funds Stocks Bonds ETFs Other
Distributions Earnings and tax-deductible contributions are taxed as ordinary income when withdrawn after age 59½ An annual Required Minimum Distribution must begin after age 73 Earnings may be withdrawn after age 59½ tax-free, provided the account has been open at least 5 years. Contributions can be withdrawn at any time without penalty. No annual lifetime Required Minimum Distribution

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