Roth vs. Traditional IRA in 2025: Which Is Better?

Traditional IRA: tax deduction now, taxed later. Roth IRA: no deduction now, tax-free qualified withdrawals.

• Consider your current vs. future tax bracket.
• RMDs: Traditional has required minimum distributions; Roth IRAs do not during the owner’s lifetime.
• Backdoor Roth may help high earners—mind the pro-rata rule.

Run side-by-side comparisons in our Retirement Calculator.

2025 IRA contribution limit: $7,000 ($8,000 if 50+). Roth income eligibility phases out at higher MAGI.