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Roth IRA vs Traditional IRA: which is better?

Quick answer

Use Roth IRA if you expect to be in the same or higher tax bracket in retirement. Use Traditional IRA if you expect lower brackets later. Roth IRAs also allow penalty-free contribution withdrawals (not earnings) anytime, making them more flexible. 2026 limit: $7,000 ($8,000 if 50+).

More context

Use Roth IRA if you expect to be in the same or higher tax bracket in retirement. Use Traditional IRA if you expect lower brackets later. Roth IRAs also allow penalty-free contribution withdrawals (not earnings) anytime, making them more flexible. 2026 limit: $7,000 ($8,000 if 50+). The exact answer depends on your specific situation — the numbers above are a strong starting point, but the right next step is to plug in your actual figures.

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