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Roth vs. Traditional IRA
The central tradeoff is when taxes are paid. Traditional contributions may reduce taxable income now; qualified Roth withdrawals may be tax-free later. Eligibility and withdrawal rules also differ.
Compare your own offersWhat decides it
Compare the marginal tax benefit today with a range of plausible retirement tax rates, while keeping contribution eligibility and withdrawal rules visible.
Contribution treatment
Generally after-tax
Deductibility depends on eligibility
Qualified withdrawals
Generally tax-free
Generally taxable
Required distributions
No lifetime RMDs for the original owner under current federal rules
RMD rules generally apply
Core advantage
Locks in tax treatment on qualified growth
May create a valuable current deduction
Before deciding
Make the comparison fair
- Use current official contribution and eligibility rules.
- Compare equal after-tax economic cost.
- Model more than one retirement tax rate.
- Do not assume a projected investment return is guaranteed.
Calculators for this decision
Understand the tradeoffs
Does a Roth always win if tax rates rise?
Not automatically. Compare the marginal rate when contributing with the effective rate applied to withdrawals, plus eligibility, timing, and account rules.
Can I contribute to both?
Potentially, but the combined annual IRA contribution limit and income eligibility rules still apply. Confirm current rules with the IRS or a qualified adviser.