Roth IRA vs Traditional IRA

By Built By One Editorial Team · Published 2026-03-02 · Last updated 2026-03-25

A clear comparison for choosing the right retirement account for your situation.

Roth IRA vs Traditional IRA: Which Is Right for You?

Choosing between a Roth IRA and Traditional IRA is one of the most important retirement planning decisions you'll make.

Traditional IRA

• Tax deduction now: Contributions may be tax-deductible
• Taxed later: Pay taxes when you withdraw in retirement
• Required distributions: Must start taking money out at 73

Roth IRA

• No tax deduction now: Contributions are made with after-tax dollars
• Tax-free growth: All growth and withdrawals are tax-free
• No required distributions: Keep money growing as long as you want

When to Choose Roth

• You expect to be in a higher tax bracket in retirement
• You're young and in a lower tax bracket now
• You want tax-free income in retirement

When to Choose Traditional

• You need the tax deduction now
• You expect to be in a lower tax bracket in retirement
• You're close to retirement and need to reduce taxable income