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The Two Main Choices for Retirement Savings

If you’re saving for retirement in 2026, one of the biggest decisions is: Roth IRA or Traditional IRA? Both are powerful tax-advantaged accounts, but they work differently depending on your current tax bracket, future expectations, and goals. Davenport Associates, we help clients choose (or mix) the right one to maximize income and legacy. Roth vs Traditional IRA – which is better? This beginner-friendly guide explains the key differences, pros/cons, and how to decide. Ready to pick the best one for you? Let’s break it down simply.

Traditional IRA: Tax Break Now

• Contributions: Made with pre-tax dollars (deductible from income now).
• Taxes: Pay taxes when you withdraw in retirement (ordinary income rates).
• 2026 Limits: $7,000 base + $1,000 catch-up (50+) = $8,000 total.
• Best for: High earners today who expect lower taxes in retirement (e.g., lower bracket later).

Roth IRA: Tax-Free Growth Forever

• Contributions: Made with after-tax dollars (no deduction now).
• Taxes: Withdrawals are 100% tax-free in retirement (if rules followed).
• 2026 Limits: Same as Traditional ($7,000 + $1,000 catch-up = $8,000).
• Best for: Lower earners now, expect higher taxes later, or want tax-free inheritance for heirs.

Key Comparison Table (2026 Rules)

Feature	Traditional IRA	Roth IRA
Tax on Contributions	Deductible now (lowers taxes)	No deduction (after-tax)
Tax on Growth	Tax-deferred	Tax-free
Tax on Withdrawals	Ordinary income tax	Tax-free (if qualified)
RMDs Required?	Yes (age 73+)	No (during your lifetime)
Heirs’ Tax on Inheritance	Taxable as income	Tax-free (if rules followed)
Income Limits for Contribution	Phase-out over ~$80K–$90K single / $130K–$150K married	Phase-out over ~$146K–$161K single / $230K–$240K married

When to Choose Traditional

• You’re in a high tax bracket now (e.g., 24%+)
• Expect lower bracket in retirement
• Want immediate tax deduction to boost current cash flow

When to Choose Roth

• You’re in a lower bracket now (or expect higher later)
• Want tax-free income and inheritance
• No RMDs — let it grow longer
• Young or mid-career with long horizon

The Hybrid Strategy Many Use

Do both!

• Max Traditional for current tax break
• Max Roth for tax-free future
• Convert portions to Roth over time (pay taxes now at lower rate)

Common Beginner Questions

Can I have both? Yes — many do.
2026 contribution deadline? April 15, 2027 for 2026 tax year.
How do we decide? We model your scenario free.

Choose Wisely – Secure Your Future

Roth vs Traditional is one of the biggest retirement decisions. Get it right in 2026. Ready to see which fits you best? Schedule a free consultation at https://iwantmywealthplan.com/free-call.

About the author

John F. Davenport, founder of J. Davenport Advisors and Davenport & Associates in Norwalk, CT, is a licensed attorney in New York and Connecticut with more than 30 years of experience as a financial advisor and investment advisor. He specializes in helping Americans maximize retirement income, explore tax-efficient strategies, implement in-plan annuity and hybrid solutions, and build lasting legacies for their heirs through thoughtful wealth planning.

References

1. Fidelity, “Roth vs Traditional Guide,” https://www.fidelity.com/roth-vs-traditional-2026
2. IRS, “IRA Contribution Limits 2026,” https://www.irs.gov/ira-limits-2026