Everyone’s situation is different. This comparison highlights key differences to help you understand how each type of IRA works and what to consider as you choose your next step
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| Distributions | Earnings and tax-deductible contributions are taxed as ordinary income when withdrawn after age 59½ An annual Required Minimum Distribution must begin after age 73 | Earnings may be withdrawn after age 59½ tax-free, provided the account has been open at least 5 years. Contributions can be withdrawn at any time without penalty.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 |
| Learn more about Traditional IRA | Learn more about Roth IRA |
