Roth vs Traditional IRA: how to choose

Choosing Roth versus Traditional contributions changes when you pay taxes. This guide outlines the trade-offs for 2025-2026, including current bracket considerations, future withdrawal taxes, and how to model a break-even point using TaxGuide Pro calculators.

How Roth vs Traditional taxes differ

  • Traditional contributions may reduce current taxable income.
  • Roth contributions are after-tax but can yield tax-free withdrawals.

When Roth may make sense

  • You expect higher tax rates in retirement.
  • You want tax-free withdrawals later.

When Traditional may make sense

  • You need a current-year tax deduction.
  • You expect lower taxable income in retirement.

Related calculators

Roth vs Traditional break-even

Compare lifetime tax outcomes.

401(k)/IRA contribution tax impact

Estimate current-year tax savings.

Backdoor Roth helper

Plan a backdoor Roth conversion.

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FAQ

Do Roth contributions reduce my current tax bill?

No. Roth contributions are made after-tax, so they do not reduce current taxable income.

Updated 2026-01-20. TaxGuide Pro provides educational tax guidance, not legal advice.