💰 Is a Roth or traditional IRA better for my retirement?

Deciding between a Roth and Traditional IRA is one of the most impactful choices for your retirement strategy. This tool helps you weigh your current tax bracket against your expected future bracket to figure out which account will make you richer. By projecting your investment growth and tax burden over time, you can see exactly which strategy puts more money in your pocket.

Your income and filing status determine whether you are eligible to contribute directly to a Roth IRA, or if you can take the full tax deduction for a Traditional IRA. For 2026, direct Roth IRA contributions begin to phase out at $153,000 for singles and $242,000 for married couples.

As Rashida notes, if your income is so high that you phase out of Roth contributions entirely, you might need to use the backdoor Roth strategy.

The core decision between a Roth and Traditional IRA comes down to whether you want to pay taxes now or later. If you are in your peak earning years and your current tax bracket is higher than what you expect in retirement, a Traditional IRA usually saves you more money overall.

As Rashida Herbers puts it, if you contribute $7,500 to the traditional IRA, you are saving around $1,800 in taxes this year. That is real money.

While a Traditional IRA saves you money today, a Roth IRA shines long-term because compounding growth is tax-free. As Rashida Herbers notes, you put in $7,500 today. It grows to $50,000 over 30 years, and you never pay taxes on that growth.

However, if you diligently invest your Traditional IRA tax savings in a side account, the math can flip. Ultimately, she recommends building tax diversification by holding both types of accounts for maximum flexibility in retirement.