Question 1

Should I open a Roth or Traditional IRA?

Accepted Answer

It depends on your current tax rate versus your expected tax rate in retirement. If you're in a low tax bracket now and expect to be in a higher one at retirement, a Roth IRA is generally better — you pay taxes at today's lower rate and withdrawals are tax-free. If you're in a high bracket now and expect lower income in retirement, a Traditional IRA is usually better — you defer taxes until you're in a lower bracket. When rates are equal, Roth wins because of tax-free growth and no required minimum distributions.

Question 2

What is the Roth IRA income limit for 2026?

Accepted Answer

For 2026, the Roth IRA income phase-out begins at $150,000 for single filers and $236,000 for married filing jointly. Above $161,000 (single) or $240,000 (MFJ), direct Roth contributions are not allowed. Higher earners can use the Backdoor Roth IRA strategy — contributing to a Traditional IRA then immediately converting to Roth — to bypass this limit.

Question 3

How much can I contribute to an IRA in 2026?

Accepted Answer

The 2026 IRA contribution limit is $7,000 per year. If you are age 50 or older, you can contribute an additional $1,000 catch-up contribution for a total of $8,000. This limit applies across all IRAs combined — you cannot contribute $7,000 to a Roth and $7,000 to a Traditional in the same year.

Question 4

What is a Backdoor Roth IRA?

Accepted Answer

A Backdoor Roth IRA is a strategy that allows high-income earners who exceed the Roth IRA income limit to still get money into a Roth account. You make a non-deductible contribution to a Traditional IRA, then convert that Traditional IRA to a Roth IRA. Since the contribution was non-deductible (after-tax dollars), there's typically little or no tax owed on the conversion. This is a legal strategy explicitly permitted by the IRS.

Roth vs Traditional IRA: Which Should You Choose?