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).
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.
