Roth vs Traditional IRA — which wins for you?

Early in your career you're likely in a lower tax bracket than you'll be at peak earning — Roth locks in that low rate so you pay taxes once, now, and never again on those dollars. Unlike most retirement accounts, Roth contributions (not earnings) can be withdrawn anytime without penalty, which eases the anxiety of locking money away for new investors. Traditional IRAs give you a deduction today, but every dollar you withdraw in retirement — including required minimum distributions starting at age 73 — is taxed as ordinary income. Nobody knows what future tax rates will be; Roth eliminates that uncertainty entirely. Ideally, having both account types gives you year-to-year flexibility to draw from whichever is taxed lower. Starting with either account is a great decision — use this calculator to optimize.