IRA Calculator: 2026 Roth vs. Traditional Strategic Model
Calculate your 2026 IRA contributions and growth. Compare Roth vs. Traditional, model 2026 SECURE 2.0 catch-ups, and check phase-out limits to optimize your retirement strategy.
Understanding 2026 IRA Contribution Limits
Standard and Catch-Up Limits
- Standard Limit:$7,500 for individuals under age 50
- Catch-Up Limit:$8,600 for individuals age 50 and older (additional $1,100)
- Combined Limit:Total contributions to all IRAs cannot exceed these limits
- Spousal IRAs:Non-working spouses can contribute based on partner's income, effectively doubling household capacity
For 2026, the IRS has set the standard IRA contribution limit at $7,500, up from previous years. This applies to both Traditional and Roth IRAs, and the limit is combinedโyou can't contribute $7,500 to each.
The catch-up contribution allows older workers to accelerate retirement savings as they approach retirement age.
SECURE 2.0 and IRAs
- Workplace Plans:401k, 403b plans have Super Catch-Up of $11,250 for ages 60-63
- IRA Limits:IRAs maintain the standard $1,100 catch-up for age 50+
- Strategy:Maximize workplace plan contributions first (especially with Super Catch-Up), then contribute to IRAs
- Roth Mandate:High earners ($150k+) must make workplace catch-ups as Roth, signaling IRS preference for Roth for high earners
While the SECURE 2.0 Act's "Super Catch-Up" ($11,250 for ages 60-63) applies to workplace retirement plans, not IRAs, it's important to understand the broader retirement landscape.
Roth vs. Traditional: The Tax Bracket Decision
When Roth Wins
- Tax-Free Growth:All earnings grow tax-free and withdrawals are completely tax-free in retirement
- No RMDs:Roth IRAs have no Required Minimum Distributions, allowing funds to grow indefinitely
- Estate Planning:Roth IRAs are excellent for passing wealth to heirs tax-free
- Example:A 25-year-old in the 12% bracket who retires in the 22% bracket saves significantly with Roth
Roth IRA is typically better when you expect your retirement tax rate to be higher than your current rate. This is common for younger workers, those in lower tax brackets now, or those who expect significant income growth.
Roth contributions are made with after-tax dollars, so you pay taxes now but never again on those funds or their growth.
When Traditional Wins
- Upfront Deduction:Contributions may be tax-deductible, reducing your current tax bill
- Tax-Deferred Growth:Earnings grow tax-deferred until withdrawal
- Lower Retirement Rate:If you retire in a lower bracket, you pay less tax on withdrawals than you saved on contributions
- Example:A 45-year-old in the 32% bracket who retires in the 15% bracket saves significantly with Traditional
Traditional IRA is typically better when you expect your retirement tax rate to be lower than your current rate. This is common for high earners who expect lower income in retirement.
Traditional IRA withdrawals are taxed as ordinary income in retirement, so the benefit depends on the tax rate difference.
The Tax Bracket Slider
- Live Updates:As you adjust the retirement tax rate slider, the growth chart and winner calculation update instantly
- Break-Even Point:Find the exact retirement tax rate where Roth and Traditional yield equal results
- Sensitivity Analysis:See how sensitive your choice is to changes in projected retirement income
This calculator includes an interactive tax bracket slider that lets you see how changing your projected retirement tax rate affects the Roth vs. Traditional comparison in real-time.
2026 Phase-Out Ranges and Eligibility
Roth IRA Phase-Out Ranges
- Single:Phase-out: $153,000 - $168,000 (2026)
- Married Filing Jointly:Phase-out: $242,000 - $257,000 (2026)
- Married Filing Separately:Phase-out: $0 - $10,000 (very limited)
- Solution:If ineligible, use Backdoor Roth strategy: contribute to non-deductible Traditional IRA, then convert to Roth
Roth IRA contributions are phased out based on Modified Adjusted Gross Income (MAGI). If your income exceeds these ranges, you cannot contribute directly to a Roth IRA.
The phase-out is calculated proportionally. If you're in the middle of the range, you can contribute a reduced amount.
Traditional IRA Deductibility Phase-Outs
- Not Covered by Plan:Full deduction available regardless of income
- Covered by Plan - Single:Phase-out: $81,000 - $96,000 (2026)
- Covered by Plan - Married Joint:Phase-out: $129,000 - $144,000 (2026)
- Above Phase-Out:Contributions are not deductibleโconsider Backdoor Roth instead
Traditional IRA deductibility depends on whether you (or your spouse) are covered by a workplace retirement plan and your MAGI.
Even if contributions aren't deductible, Traditional IRAs still offer tax-deferred growth, though Roth conversion may be more beneficial.
IRA Calculator FAQ
? What is the difference between a Roth IRA and a Traditional IRA?
Roth IRA: Contributions are made with after-tax dollars, but withdrawals in retirement are completely tax-free. Traditional IRA: Contributions may be tax-deductible (depending on income and workplace plan coverage), but withdrawals are taxed as ordinary income in retirement. The choice depends on whether you expect your tax rate to be higher now or in retirement.
? What are the 2026 IRA contribution limits?
For 2026, the standard IRA contribution limit is $7,500. If you're age 50 or older, you can contribute an additional $1,100 as a catch-up contribution, for a total of $8,600. These limits apply to both Traditional and Roth IRAs combinedโyou can't contribute $7,500 to each.
? What is the SECURE 2.0 "Super Catch-Up" for IRAs?
The SECURE 2.0 Act's "Super Catch-Up" ($11,250) applies to workplace retirement plans (401k, 403b) for ages 60-63, not IRAs. IRA catch-up remains $1,100 for age 50+. However, understanding the Super Catch-Up helps inform your overall retirement strategy, as you may want to maximize workplace plans first, then contribute to IRAs.
? Can I deduct my Traditional IRA contribution?
Traditional IRA deductibility depends on your Modified Adjusted Gross Income (MAGI) and whether you (or your spouse) are covered by a workplace retirement plan. If not covered, you can deduct the full contribution. If covered, deductibility phases out: Single ($81,000-$96,000), Married Joint ($129,000-$144,000) in 2026. Above these ranges, contributions are not deductible.
? What is a "Backdoor Roth" strategy?
A Backdoor Roth is a strategy for high earners who exceed Roth IRA income limits. You contribute to a non-deductible Traditional IRA, then immediately convert it to a Roth IRA. This allows you to effectively contribute to a Roth IRA regardless of income, though you'll pay taxes on any gains at conversion. This is a common 2026 workaround for phase-out restrictions.
? How do I know if Roth or Traditional is better for me?
Generally, choose Roth if you expect your retirement tax rate to be higher than your current rate (younger workers, lower current income). Choose Traditional if you expect your retirement tax rate to be lower (higher current income, expect lower income in retirement). This calculator compares both options based on your specific tax brackets to show you the winner.