{"id":20643,"date":"2025-02-03T15:59:54","date_gmt":"2025-02-03T21:59:54","guid":{"rendered":"https:\/\/www.hrblock.com\/tax-center\/"},"modified":"2025-11-04T17:58:43","modified_gmt":"2025-11-04T23:58:43","slug":"traditional-and-roth-ira","status":"publish","type":"post","link":"https:\/\/www.hrblock.com\/tax-center\/income\/retirement-income\/traditional-and-roth-ira\/","title":{"rendered":"Roth IRA vs Traditional IRA: Contribution limits, rules, and key differences"},"content":{"rendered":"<div class=\"wp-block-image\">\n<figure class=\"alignright size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"240\" height=\"160\" src=\"https:\/\/www.hrblock.com\/tax-center\/wp-content\/uploads\/2023\/09\/roth-vs-traditional-iras.jpg\" alt=\"roth vs traditional ira\" class=\"wp-image-63203\"\/><\/figure><\/div>\n\n\n<p>When it comes to planning for your retirement, understanding the differences between a Roth vs Traditional IRA is key. While they work in different ways, both Traditional and Roth IRAs offer tax advantages for long-term retirement planning. As you compare the two options, you\u2019ll want to understand the income tax implications and rules for the Traditional and Roth IRA contributions.<\/p>\n\n\n\n<p>This article will discuss:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>What is an IRA<\/li>\n\n\n\n<li>IRA terminology<\/li>\n\n\n\n<li>Income sources for Traditional and Roth IRAs<\/li>\n\n\n\n<li>Traditional IRA rules<\/li>\n\n\n\n<li>Roth IRA rules<\/li>\n\n\n\n<li>IRA rules: Additional Details<\/li>\n\n\n\n<li>Roth IRA vs. Traditional IRA: Which is best for you?<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-what-is-an-ira\"><a><\/a>What is an IRA?<\/h2>\n\n\n\n<p>An IRA is an Individual Retirement Arrangement, and you\u2019ll often hear it in reference to two specific types of IRAs: Roth and Traditional.<\/p>\n\n\n\n<p>As mentioned above, these two account types have some similarities and some differences. For example, the IRA contribution limits are the same for both Roth and Traditional IRAs. However, when it comes to the tax treatment of those annual contributions, the accounts have some major differences. <\/p>\n\n\n\n<p>Read on as we guide you through the nuances of each type of retirement account, including the specific tax-related terms and who can contribute to an IRA.<\/p>\n\n\n\n<div class=\"wp-block-create-block-hrb-single-override-cta\" class=\"wp-block-create-block-hrb-single-override-cta\" style=\"background-color:#005d1f\"><div class=\"hrb-single-override-cta--image\" style=\"background-image:url(&quot;https:\/\/www.hrblock.com\/tax-center\/wp-content\/themes\/hrb_tic\/img\/on-laptop-at-desk-graphic.png&quot;);background-size:contain;background-position:center;background-repeat:no-repeat\"><\/div><div class=\"hrb-single-override-cta--copy #ffffff\"><h3 class=\"main-heading\">File with H&amp;R Block to get your max refund<\/h3><div class=\"quick-links-list\">\n\n<div class=\"wp-block-button\"><a class=\"wp-block-button__link wp-element-button\" href=\"https:\/\/www.hrblock.com\/online-tax-filing\/\">File online<\/a><\/div>\n\n\n<div class=\"wp-block-button\"><a class=\"wp-block-button__link wp-element-button\" href=\"https:\/\/www.hrblock.com\/tax-offices\/?app_method=GENERAL_TAX_PREP_METHOD\">File with a tax pro<\/a><\/div>\n\n<\/div><\/div><\/div>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-ira-terminology\">IRA terminology<\/h2>\n\n\n\n<p>Before we cover Roth and Traditional IRA rules, let\u2019s cover some common IRA terms:<\/p>\n\n\n\n<p><strong>Contribution:<\/strong> This is money you put into an IRA account. There are annual limits on the amounts you can contribute to IRA accounts. The limits, outlined below, are the same for Traditional and Roth IRAs. Note: Contributions are different than <a href=\"https:\/\/www.hrblock.com\/tax-center\/income\/retirement-income\/reporting-401k-rollover-into-ira\/\">IRA rollovers from a 401(k)<\/a>.<\/p>\n\n\n\n<p><strong>Deductible contribution:<\/strong> A deductible contribution means you subtract what you contribute from your taxable income. Deductible contributions are fully taxed at the time of distribution.<\/p>\n\n\n\n<p><strong>Nondeductible contribution:<\/strong> Nondeductible contributions are made with money you&#8217;ve already paid taxes on. These amounts must be reported on Form 8606. So, when you take the money out later, you won\u2019t have to pay taxes on the amount you originally put in. A nondeductible contribution doesn\u2019t reduce your taxable income the year you make the contribution.<\/p>\n\n\n\n<p><strong>Distribution:<\/strong> A distribution is the money you take out from an IRA account. It\u2019s also known as a \u201cwithdrawal.\u201d<\/p>\n\n\n\n<p><strong>Modified Adjusted Gross Income (MAGI):<\/strong> Your <a href=\"https:\/\/www.hrblock.com\/tax-center\/income\/other-income\/modified-adjusted-gross-income\/\">MAGI<\/a> is your <a href=\"https:\/\/www.hrblock.com\/tax-center\/income\/other-income\/what-is-adjusted-gross-income-and-taxable-income\/\">Adjusted Gross Income (AGI)<\/a> with certain deduction and exclusions added back<strong>. <\/strong>It\u2019s used to determine your deductibility for Traditional IRAs and contribution eligibility for Roth IRAs.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-income-sources-for-traditional-and-roth-iras\"><a><\/a>Income sources for Traditional and Roth IRAs<\/h2>\n\n\n\n<p>As mentioned, IRAs are a great way to save for retirement, but not everyone can contribute to one. You must have certain type of incomes each year to be able to make a contribution. That said, you may be eligible to contribute one year, but not eligible the next.<\/p>\n\n\n\n<p>You can make a Traditional or Roth IRA contribution if you receive taxable compensation from:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Wages, salaries, and tips<\/li>\n\n\n\n<li>Sales commissions<\/li>\n\n\n\n<li>Professional fees<\/li>\n\n\n\n<li>Bonuses<\/li>\n\n\n\n<li><a href=\"https:\/\/www.hrblock.com\/tax-center\/income\/other-income\/business-income\/\">Self-employment income<\/a><\/li>\n\n\n\n<li>Military compensation while serving in a combat zone tax-exclusion area<\/li>\n\n\n\n<li>Certain alimony or separate maintenance payments included in gross income<\/li>\n\n\n\n<li>Non-tuition fellowship and stipend payments included in gross income<\/li>\n<\/ul>\n\n\n\n<p>You won\u2019t be able to make an IRA contribution if your only income sources are:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Profit from the sale of stocks or other property<\/li>\n\n\n\n<li>Interest income or dividend income<\/li>\n\n\n\n<li>Rental income<\/li>\n\n\n\n<li>Social Security income<\/li>\n\n\n\n<li>Pension or annuity income<\/li>\n\n\n\n<li>Income from certain partnerships<\/li>\n\n\n\n<li>Deferred compensation<a><\/a><\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-traditional-ira-rules\">Traditional IRA rules<\/h2>\n\n\n\n<p>While the contribution limits and eligible income sources for both types of IRAs are the same, the differences between the two account types become clear when you start looking at the tax details. Let\u2019s outline Traditional IRAs first.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-traditional-ira-contribution-limits\"><a><\/a>Traditional IRA contribution limits<\/h3>\n\n\n\n<p>With a Traditional IRA, the contribution limit to all accounts (both Traditional IRAs and Roth IRAs) must be the smaller of:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Your taxable compensation for the year<\/li>\n\n\n\n<li>$7,000, the maximum IRA contribution for 2025 or $8,000 if your current age is 50 or older and you are making catch-up contributions<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-traditional-ira-contributions-tax-deductibility\"><a><\/a>Traditional IRA contributions tax deductibility<\/h3>\n\n\n\n<p>You might have heard that contributing to your IRA is a great way to lower your taxable income. That\u2019s true, but this is only possible with a Traditional IRA (not a Roth). What\u2019s more, not everyone\u2019s contributions count as a deduction. In fact, some people may only be able to deduct a portion of their Traditional IRA contribution from their income if they are above certain MAGI ranges.<\/p>\n\n\n\n<p>These two tests figure out how much of your traditional IRA contributions are tax-deductible:<\/p>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"h-1-nbsp-nbsp-active-participant-test\">1.&nbsp;&nbsp; Active participant test<\/h4>\n\n\n\n<p>The <a href=\"https:\/\/www.hrblock.com\/tax-center\/irs\/forms\/understanding-w-2-boxes-and-codes\/\">W-2<\/a> your employer sends shows if you\u2019re an active participant for the tax year in an employer-sponsored plan like a 401(k). On the form, the \u201cRetirement Plan\u201d box should be checked if you\u2019re an active participant.<\/p>\n\n\n\n<p>If neither you nor your spouse were active participants in a company-sponsored plan, you can deduct your Traditional IRA contributions regardless of your MAGI.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"h-2-nbsp-nbsp-ira-income-test\">2.&nbsp;&nbsp; IRA income test<\/h4>\n\n\n\n<p>If you\u2019re covered by a company plan like a 401(k), a second test helps determine how much of your IRA contribution you can deduct. If you\u2019re an active participant in a company plan, you\u2019ll need to check your MAGI to see if and how much of your contribution is deductible. \u00a0<\/p>\n\n\n\n<p>2024 MAGI limits<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td>&nbsp;<\/td><td><strong>Single \/ Head of Household (HoH) (you are an active participant)<\/strong><\/td><td><strong>Married Filing Jointly (MFJ) or Qualifying Surviving Spouse (QSS) (both spouses are active participants)<\/strong><\/td><td><strong>MFJ (one spouse is an <\/strong><strong>active participant)<\/strong><\/td><td><strong>Married Filing Single (MFS) (regardless of if you are an active participant or not)<\/strong><\/td><\/tr><tr><td>Phase out starting amount. If your MAGI is below this, your contribution is fully deductible.<\/td><td>$77,000<\/td><td>$123,000<\/td><td>$230,000<\/td><td>$0<\/td><\/tr><tr><td>Phaseout range for a partial deduction<\/td><td>$77,000 to $87,000<\/td><td>$123,000 to $143,000<\/td><td>$230,000 to $240,000<\/td><td>$0 to $10,000<\/td><\/tr><tr><td>Phaseout cap<\/td><td>$87,000<\/td><td>$143,000<\/td><td>$240,000<\/td><td>$10,000<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-traditional-ira-recordkeeping\"><a><\/a>Traditional IRA recordkeeping<\/h3>\n\n\n\n<p>There\u2019s an important income tax tip for Traditional IRAs. If you have made a nondeductible contribution to a Traditional IRA, keep track of your basis (the amount of your original taxable Traditional IRA contributions) to make sure you don\u2019t pay tax on the money again when you withdraw it. Then, file <a href=\"https:\/\/www.hrblock.com\/tax-center\/irs\/forms\/nondeductible-ira-contributions\/\">Form 8606<\/a> for any tax year you made a nondeductible IRA contribution and to track your total IRA basis. Be sure to keep these for your records as they\u2019ll be helpful when it\u2019s time to report your withdrawals. Otherwise, you will be required to pay income tax when you make a withdrawal from your IRA.<\/p>\n\n\n\n<p>Use <a href=\"https:\/\/www.irs.gov\/pub\/irs-pdf\/i8606.pdf\">Form 8606 Instructions<\/a> to help you figure out&nbsp;the taxable portion of your IRA withdrawal. &nbsp;You might receive both taxable and nontaxable distributions.<\/p>\n\n\n\n<div class=\"wp-block-create-block-hrb-single-override-cta\" class=\"wp-block-create-block-hrb-single-override-cta\" style=\"background-color:#005d1f\"><div class=\"hrb-single-override-cta--image\" style=\"background-image:url(&quot;https:\/\/www.hrblock.com\/tax-center\/wp-content\/themes\/hrb_tic\/img\/on-laptop-at-desk-graphic.png&quot;);background-size:contain;background-position:center;background-repeat:no-repeat\"><\/div><div class=\"hrb-single-override-cta--copy #ffffff\"><h3 class=\"main-heading\">File with H&amp;R Block to get your max refund<\/h3><div class=\"quick-links-list\">\n\n<div class=\"wp-block-button\"><a class=\"wp-block-button__link wp-element-button\" href=\"https:\/\/www.hrblock.com\/online-tax-filing\/\">File online<\/a><\/div>\n\n\n<div class=\"wp-block-button\"><a class=\"wp-block-button__link wp-element-button\" href=\"https:\/\/www.hrblock.com\/tax-offices\/?app_method=GENERAL_TAX_PREP_METHOD\">File with a tax pro<\/a><\/div>\n\n<\/div><\/div><\/div>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-roth-ira-rules\"><a><\/a><a><\/a>Roth IRA rules<\/h2>\n\n\n\n<p>Roth IRAs have many of the same rules as Traditional IRAs. However, there are some differences and exceptions:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>You must designate the account as a Roth IRA when you open it.<\/li>\n\n\n\n<li>You can\u2019t deduct Roth IRA contributions on your tax return. But your withdrawals, assuming you follow the rules (i.e. make qualified distributions), will be tax free.<\/li>\n\n\n\n<li>You don\u2019t have to take <a href=\"https:\/\/www.hrblock.com\/tax-center\/irs\/tax-responsibilities\/irs-required-minimum-distribution\/\">Required Minimum Distributions<\/a> starting at any age.<\/li>\n\n\n\n<li>The balance in your Roth IRA account when you pass generally goes to your heirs tax-free. The account must have been open and contributed to for at least five years.<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-roth-ira-contribution-limits\"><a><\/a>Roth IRA contribution limits<\/h3>\n\n\n\n<p>Roth IRA contribution limits are the same as those for Traditional. The maximum amount you can contribute to all accounts (to both Traditional IRAs and Roth IRAs) must be less than:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Your taxable compensation for the year<\/li>\n\n\n\n<li>$7,000, the maximum IRA contribution for 2025 or $8,000 if you\u2019re age 50 or older and are making catch-up contributions.<\/li>\n\n\n\n<li>The amount you can contribute to a Roth IRA may also be limited based on your MAGI.<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-roth-ira-income-limits\">Roth IRA income limits<\/h3>\n\n\n\n<p>How much you can contribute to a Roth IRA depends on your household&#8217;s modified adjusted gross income (MAGI).&nbsp;And it\u2019s slightly different than Traditional IRAs.<\/p>\n\n\n\n<p>In 2024, Roth contributions income limits are as follows:<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td>&nbsp;<\/td><td><strong>Single \/ Head of Household (HoH)<\/strong><\/td><td><strong>Married Filing Jointly (MFJ) or Qualifying <\/strong><strong>Surviving Spouse (QSS)<\/strong><\/td><td><strong>Married Filing Single (MFS)<\/strong><\/td><\/tr><tr><td>Phase out starting amount (If your MAGI is below this, your contribution is fully deductible.)<\/td><td>$146,000<\/td><td>$230,000<\/td><td>NA<\/td><\/tr><tr><td>Phaseout range for a partial deduction<\/td><td>$146,000 to $161,000<\/td><td>$230,000 to $240,000<\/td><td>$0 to $10,000<\/td><\/tr><tr><td>Phaseout cap<\/td><td>$161,000<\/td><td>$240,000<\/td><td>$10,000<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-how-are-roth-ira-contributions-taxed\"><a><\/a>How are Roth IRA contributions taxed?<\/h3>\n\n\n\n<p>Roth IRA contributions are taxed as regular income in the year you contribute meaning they are not tax-deductible. You can withdraw your contributions (but not your earnings) tax-free and penalty-free at any point within the tax year.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-ira-rules-additional-details\"><a><\/a>IRA rules: Additional details<\/h2>\n\n\n\n<p>Now that we covered the details of Traditional and Roth accounts, let\u2019s go through a few other rules.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-excess-contributions-and-excise-tax\">Excess contributions and excise tax<\/h3>\n\n\n\n<p>If you contribute more than the limits mentioned above, there\u2019s a consequence. It\u2019s called an excise tax, and it\u2019s equal to 6% of the amount you go over the limit (i.e., an excess contribution). The penalty applies each year until you either withdraw the excess or use the excess as a future year\u2019s contribution. But, you don\u2019t have to pay the excise tax if you withdraw the extra amount by the <a href=\"https:\/\/www.hrblock.com\/tax-center\/irs\/deadlines-and-extensions\/tax-deadlines\/\">tax return deadline<\/a> (plus extensions).<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-ira-contribution-minimum-and-maximum-age-limits\"><a><\/a>IRA contribution minimum and maximum age limits<\/h3>\n\n\n\n<p>There\u2019s no minimum or maximum age to participate in either a traditional or Roth IRA. For example, if your teenage child earns income from a part-time job, they can contribute up to $7,000 for 2025 (or their compensation amount if lower) to a Roth IRA.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-due-date-for-ira-contributions\"><a><\/a>Due date for IRA contributions<\/h3>\n\n\n\n<p>The last day to make your IRA contribution each year is when your tax return is due, not including extensions. You can mail your IRA contribution, and you\u2019ll meet the deadline if it\u2019s postmarked by the <a href=\"https:\/\/www.hrblock.com\/tax-center\/irs\/deadlines-and-extensions\/tax-deadlines\/\">tax deadline<\/a> for filing <a href=\"https:\/\/www.hrblock.com\/tax-center\/irs\/forms\/form-1040\/\">Form 1040<\/a>.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-spousal-iras\"><a><\/a>Spousal IRAs<\/h3>\n\n\n\n<p>If you\u2019re married and your spouse doesn\u2019t have earned income or makes less compensation than you, you can open a Spousal IRA for them. You can contribute up to the maximum for your spouse as long as you don\u2019t exceed the MAGI income limit on a <a href=\"https:\/\/www.hrblock.com\/tax-center\/filing\/personal-tax-planning\/married-filing-jointly-vs-separately\/\">Married Filing Jointly<\/a> return. <a><\/a><\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-moving-your-money-around\">Moving your money around<\/h3>\n\n\n\n<p>You don\u2019t have to keep your IRAs in the same investment types or financial institutions from your contribution date to your retirement date. You can change your investments in your IRA to take advantage of changes in the market or in your investment philosophy. You can also move your entire IRA to a different financial institution.<\/p>\n\n\n\n<p>However, you must follow certain rules. Some financial institutions might impose penalties if you change investments before the maturity date is up. (Examples include CDs and annuities.)<\/p>\n\n\n\n<p>If you move your money from one institution to another, it\u2019s called an IRA transfer. Be sure to follow the institutions\u2019 paperwork closely, so that your money stays properly registered in an IRA, and you avoid any tax consequences.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-multiple-iras\">Multiple IRAs<\/h3>\n\n\n\n<p>You can have many IRA accounts at the same or different financial institutions. Whether you have one account or several, you still need to follow the annual contribution limits mentioned above.&nbsp;<\/p>\n\n\n\n<p>Each year, you have the following options:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Contribute to a single Traditional IRA or Roth IRA account Divide your contribution among several accounts\u2014even across<\/li>\n\n\n\n<li>Traditional IRA and a Roth IRAs (subject to the MAGI limits that apply)<\/li>\n<\/ul>\n\n\n\n<p>Note: If you have more than one IRA account you might also pay multiple trustees for annual fees or other advisor fees.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-traditional-to-roth-ira-conversions\"><a><\/a>Traditional to Roth IRA conversions<\/h3>\n\n\n\n<p>Moving money from your Traditional IRA to a Roth IRA is called a conversion. Many people take advantage of this because you can convert funds from your Traditional IRA to a Roth IRA, no matter how much income you make.<\/p>\n\n\n\n<p>Take note of these two points:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Any money in your Traditional IRA that wasn\u2019t previously taxed (your IRA\u2019s contributions and earnings) will be taxed the year you do the conversion to a Roth.<\/li>\n\n\n\n<li>Once you convert funds from your Traditional IRA to a Roth IRA you can\u2019t return the money to your Traditional IRA.<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-distributions\">Distributions<\/h3>\n\n\n\n<p>You must start withdrawing from your Traditional IRA by April 1 of the year after the year you reach your required beginning date (RBD). For most people, this is when you reach your applicable age. The applicable age changes based on the date you were born. It could be age 72, 73, or 75. Learn more about these withdrawals, which are called <a href=\"https:\/\/www.hrblock.com\/tax-center\/irs\/tax-responsibilities\/irs-required-minimum-distribution\/\">Required Minimum Distributions.<\/a><\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-roth-ira-vs-traditional-ira-which-is-best-for-you\"><a><\/a>Roth IRA vs. Traditional IRA: Which is best for you?<\/h2>\n\n\n\n<p>If you\u2019re trying to decide which is better for you\u2014a Roth IRA vs. Traditional IRA, taxes are a big part of that decision. Generally:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>A Roth IRA may be more advantageous if you expect your tax rate to be higher in retirement than it is currently.<\/li>\n\n\n\n<li>A Traditional IRA may be more advantageous if you expect your tax rate to be lower in retirement vs. now.&nbsp;<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-get-help-navigating-your-ira-related-taxes\">Get help navigating your IRA-related taxes<\/h2>\n\n\n\n<p>Whether you\u2019re making contributions or taking distributions, retirement accounts can complicate your taxes. Leaning on trusted tax expertise can help. &nbsp;<\/p>\n\n\n\n<p>Whether you choose to&nbsp;<a href=\"https:\/\/www.hrblock.com\/tax-offices\/?app_method=GENERAL_TAX_PREP_METHOD\">file with a tax pro<\/a>&nbsp;or file with&nbsp;<a href=\"https:\/\/www.hrblock.com\/online-tax-filing\/\">H&amp;R Block Online<\/a>, you can rest assured that we\u2019ll get you the biggest refund possible.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>When it comes to planning for your retirement, understanding the differences between a Roth vs Traditional IRA is key. While they work in different ways, both Traditional and Roth IRAs offer tax advantages for long-term retirement planning. As you compare the two options, you\u2019ll want to understand the income tax implications and rules for the [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":62125,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[24,48,23342,23345],"tags":[],"class_list":["post-20643","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-income","category-retirement-income","category-life-stages","category-everything-in-between"],"acf":[],"yoast_head":"<title>Roth vs Traditional IRA Contribution Limits &amp; Rules | H&amp;R Block\u00ae<\/title>\n<meta name=\"description\" content=\"Learn more about Roth IRAs &amp; Traditional IRAs, and their contribution rules. 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