Which IRA Is Right for Me?

The Roth vs Traditional question has a clear answer once you know your situation. Work through the scenarios below.

You are in your 20s or early 30s

Bracket: Likely 10% or 12%

Roth IRA

You are probably in the lowest tax brackets of your career. This is the ideal time to pay taxes on your contributions.
With 30+ years of compounding ahead, the tax-free growth is enormous. A $6,500 contribution at age 25, growing at 7%, becomes roughly $100,000 by age 65, all tax-free.
Your income will likely be much higher in retirement (Social Security, RMDs from a 401k, pension, etc.), which means a higher retirement tax rate.

Bracket: 32%, 35%, or 37%

Traditional IRA (or both)

Every dollar you deduct from a Traditional IRA saves you 32 to 37 cents now. That is a guaranteed, immediate return.
Most people spend less in retirement than they earn while working. If your retirement income will be in a lower bracket, you win with Traditional.
If you earn too much for a Roth anyway, consider the backdoor Roth in addition to maxing your 401(k) with pre-tax contributions.

Bracket: 22% or 24%

Roth leans ahead

These brackets are historically moderate. Tax rates in the US have been much higher in past decades and could rise again.
The Roth gives you certainty. You lock in today's rate. If rates go up, you win significantly.
No RMDs on a Roth also matters here. A large Traditional IRA forces income you may not need, potentially bumping you into a higher bracket.
That said: if you will retire with significantly lower income (part-time work, no pension, modest Social Security), Traditional could still win.

Bracket: Any

Depends on your retirement income

Estimate your expected retirement income: Social Security, RMDs from your 401(k), pension, rental income, part-time work. What tax bracket does that put you in?
If you expect to be in a lower bracket in retirement than now, Traditional makes more sense for remaining contributions.
If you have a large Traditional IRA balance and expect high retirement income, consider Roth conversions during low-income years before Social Security kicks in.
For those near retirement with uncertain timelines, diversifying between both (some Roth, some Traditional) gives flexibility.

Bracket: Too high for direct Roth

Backdoor Roth

You cannot contribute directly to a Roth IRA at this income level.
The Backdoor Roth lets you contribute to a non-deductible Traditional IRA and immediately convert to Roth. Legal, IRS-approved, widely used.
As long as you have no existing pre-tax IRA balances (or can roll them into a 401(k)), the conversion is tax-free.
See our full Backdoor Roth guide for step-by-step instructions.

Bracket: Any

Roth IRA

Roth IRAs have no required minimum distributions during your lifetime. You control when you take money out.
Roth contributions (not earnings) can be withdrawn any time without penalty, giving you an emergency backstop.
For estate purposes, Roth IRAs pass to heirs tax-free. A Traditional IRA passes the tax bill along with the account.
If uncertainty about future tax laws makes you nervous, the Roth eliminates that variable entirely.

Run the calculator with your exact numbers. Enter your current and expected retirement tax brackets and see the dollar difference.