Roth IRA vs. Traditional IRA in 2026: IRS Limits, Income Ranges and Key Differences

Roth and traditional IRAs share one annual limit but treat taxes in opposite orders. A traditional IRA may give you a deduction now and is taxed when you withdraw. A Roth IRA gives no deduction now, and qualified withdrawals are tax-free. This guide sets out the 2026 IRS figures and the differences that decide which fits. It is general information, not tax advice.

The 2026 limits at a glance

| | Traditional IRA | Roth IRA | |---|---|---| | 2026 contribution limit | $7,500 (combined with Roth) | $7,500 (combined with traditional) | | Catch-up, age 50+ | $1,100 | $1,100 | | Tax deduction for contributions | Possibly, subject to the ranges below | No | | Income limit to contribute | None | Yes, see below | | Qualified withdrawals | Taxed as income | Tax-free | | Required distributions for original owner | Yes, under IRS rules | No |

The IRS announced the $7,500 limit, the $1,100 catch-up and every income range below in IR-2025-111 (November 13, 2025). The IRS Roth IRA page confirms the same combined contribution limit applies to all of your Roth and traditional IRAs, so you cannot contribute $7,500 to each.

Who can contribute to a Roth IRA in 2026

Roth eligibility is based on modified adjusted gross income. The IRS 2026 phase-out ranges:

• Single and head of household: $153,000 to $168,000.
• Married filing jointly: $242,000 to $252,000.
• Married filing separately: $0 to $10,000 (unchanged).

Inside a range, the amount you may contribute shrinks. Above it, you cannot contribute directly to a Roth.

When a traditional IRA contribution is deductible in 2026

Anyone can contribute to a traditional IRA, but whether you can deduct it depends on workplace plan coverage and income. The IRS 2026 ranges:

• Single, covered by a workplace plan: $81,000 to $91,000.
• Married filing jointly, contributing spouse covered: $129,000 to $149,000.
• Married filing jointly, contributor not covered but spouse is: $242,000 to $252,000.
• Married filing separately, covered: $0 to $10,000 (unchanged).

If neither you nor your spouse has workplace plan coverage, these ranges do not limit the deduction.

How withdrawals differ

• Traditional: withdrawals are generally taxed as ordinary income, so the deduction you take now is repaid in tax later.
• Roth: per Publication 590-B, a distribution is qualified when it comes after the five-year period beginning with the first tax year you contributed to a Roth IRA, and is made on or after age 59½, because of disability, to a beneficiary or estate after death, or for a first home (up to $10,000 lifetime). Contributions come out before earnings when a distribution is not qualified.
• Required distributions: Publication 590-B says original Roth IRA owners don't have to take distributions regardless of age.

A worked example

A 52-year-old single filer, not covered by a workplace plan, could put up to $7,500 plus the $1,100 catch-up, or $8,600, into either type in 2026, or split that total between them. With income of $160,000, they fall inside the Roth range ($153,000 to $168,000), so a direct Roth contribution would be reduced. Their traditional contribution would still be deductible, because they have no workplace plan. If they were covered, $160,000 would be above the $81,000 to $91,000 range and the deduction would be unavailable. These are limits, not recommendations.

What to do with this

• Check your income first. Your modified AGI against the ranges above decides whether you can contribute to a Roth and whether a traditional contribution is deductible.
• Compare tax brackets now and later. A deduction is worth more at a higher bracket. See how the 2026 federal tax brackets and marginal rates work.
• Track the combined limit. Contributions to all IRAs count toward the same $7,500 ($8,600 with catch-up).
• Look at your other options. If you also want a tax-advantaged way to pay for health costs, see HSA vs. FSA 2026 limits. If you are deciding where to hold cash instead, see I Bonds vs. Treasury bills vs. CDs.
• Get personal advice for edge cases. Conversions, mid-year coverage changes and the Roth five-year clock can be modeled by a credentialed preparer. See how to verify a tax preparer's PTIN or CPA license.

How we sourced this

The contribution limit, catch-up and all income ranges are from IRS news release IR-2025-111, and the qualified-distribution and distribution rules are from IRS Publication 590-B (2025 edition at retrieval), all retrieved October 17, 2026. We list sources so you can check each figure yourself, as set out in our editorial standards.

The takeaway

For 2026 you can put $7,500 ($8,600 if 50 or older) across all your IRAs. A traditional IRA may give a deduction now and taxes withdrawals later; a Roth gives none now and tax-free qualified withdrawals, but only below the income ranges. Check your income and workplace plan coverage against the IRS ranges first.