Roth vs Traditional IRA

2026 contribution limits ($7,500 / $8,600 catch-up) · Break-even analysis · Income phase-out check · Backdoor Roth eligibility

Your Situation
Filing status
Current age
🎂
50+ enables $1,100 catch-up contribution
Modified AGI (MAGI)
$
Used to determine Roth eligibility
Annual contribution
$
2026 limit: $7,500
Have a workplace retirement plan? (401k, 403b)
Affects Traditional IRA deductibility phase-out thresholds
Retirement Projections
Target retirement age
🎯
Expected annual return
%
% / yr
Historical S&P 500 avg ~10%, conservative ~6-7%
Expected tax bracket in retirement
%
%
10, 12, 22, 24, 32, 35, or 37. Lower usually better for Traditional.
2026 Income Phase-Outs
Roth IRA Eligibility
Single: $153,000 – $168,000
MFJ: $242,000 – $252,000
Above max → use Backdoor Roth
Traditional Deductibility
Single: $81,000 – $91,000
MFJ: $129,500 – $149,500
Only with a workplace plan
Our Recommendation
⚖️ Either works
Either works at your income level
Eligibility Check
Roth IRA eligibility✅ Full
Traditional deductible✅ $750
2026 contribution limit$7,500
27-Year Projection (27 yrs @ 7%)
Roth IRA
Tax now: $1,650
Grows to: $46,604
Tax at withdrawal: $0
$46,604
after-tax value
Traditional IRA
Tax savings now: $165
Grows to: $46,604
Tax at 22%: $10,253
$36,351
after-tax value
🔵 Roth wins by $10,253 over 27 years
Current bracket
22.0%
vs
Retirement bracket
22%
Equal brackets → either works, Roth preferred for flexibility