Compare / 2025 tax year
The canonical side-by-side: what each account does with your taxes, who qualifies for it, and how one shared annual limit splits when you hold both.
Comparison ledger
Seven rows, each tied to the rule behind it. Where a row tilts one way, the note under the row name says so.
| Decision row | Traditional IRA | Roth IRA |
|---|---|---|
| When the tax break landsFavors: matching your rate now with your rate later | A deductible contribution lowers taxable income in the year you make it.1 | No deduction now. Qualified withdrawals are tax-free: the account is at least five years old and you are 59½ or meet a listed exception.2 |
| Deduction eligibilityFavors: Roth when a workplace plan blocks the deduction | Depends on workplace plan coverage and modified adjusted gross income.1 | No deduction is claimed, so no income test applies here. |
| Who may contributeFavors: Traditional for high earners | Any age, with earned income at least equal to what you contribute. | Income phase-outs can shrink or end the amount you may contribute.3 |
| Annual contribution limitFavors: neither. One number covers both | A single shared limit covers all your IRAs combined. Opening both does not double it, and current-year amounts sit on the contribution limits table.3 | |
| Contribution deadlineFavors: neither | The tax filing deadline, generally April 15, for both accounts. | |
| Required minimum distributionsFavors: Roth | Withdrawals are required beginning at age 73.2 | None for the account owner. |
| Early withdrawalFavors: Roth, on contributions only | Ordinary income tax plus a 10% penalty, unless an exception applies. | Your own contributions come back first, untaxed. |
Run your own figures in the compare-my-situation tool.
Compare tool
Timing is the whole comparison. A Traditional IRA generally moves the tax benefit to the year you contribute through a deduction. A Roth moves it to withdrawal. Choose your situation and read the note.
A Traditional IRA moves the tax benefit to the year you contribute through a deduction. A Roth moves it to withdrawal. Which one fits depends on your filing status, your age, and whether you are covered by a workplace plan.
Rule cited: IRC §408A(c)(3); IRS Pub 590-A
Figures and phase-out ranges reflect the 2025 tax year. Full phase-out ranges by filing status
Where to go next
The table above tells you what each account does with your money. These two pages tell you whether you qualify for it, and who checks the numbers behind it.