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IRA Comparison Cheat Sheet — Traditional vs Roth vs SEP vs SIMPLE

Side-by-side comparison of all IRA types with 2026 contribution limits, income phase-outs, tax treatment, and withdrawal rules.

2026 Contribution Limits

ItemValueNotes
Traditional IRA$7,000 (under 50)$8,000 with catch-up (50+)
Roth IRA$7,000 (under 50)$8,000 with catch-up (50+)
SEP IRA25% of comp, max $70,000Employer-only contributions
SIMPLE IRA$16,500 (under 50)$20,000 with catch-up (50+)
Combined IRA limit$7,000 totalTraditional + Roth share this limit

Income Phase-Outs (Single) — 2026

ItemValueNotes
Traditional IRA (with plan)$79,000 – $89,000 MAGIDeduction phases out
Traditional IRA (no plan)No limitAlways fully deductible
Roth IRA$150,000 – $165,000 MAGIContribution phases out
SEP IRANo income limitAny self-employment income
SIMPLE IRANo income limitMust earn $5,000+ in 2 prior years

Tax Treatment Comparison

ItemValueNotes
Traditional IRA contributionsTax-deductible (if eligible)Pre-tax dollars
Traditional IRA growthTax-deferredTaxed as ordinary income at withdrawal
Roth IRA contributionsNot deductibleAfter-tax dollars
Roth IRA growthTax-free foreverQualified withdrawals = $0 tax
SEP IRASame as TraditionalPre-tax in, taxed at withdrawal
SIMPLE IRASame as TraditionalPre-tax in, taxed at withdrawal

Withdrawal Rules

ItemValueNotes
Traditional IRA (before 59½)10% penalty + income taxExceptions: first home, education
Roth IRA contributionsWithdraw anytime, no penaltyYou already paid tax on these
Roth IRA earningsTax/penalty-free after 59½Must have account 5+ years
RMDs — TraditionalStart at age 73Required minimum distributions
RMDs — Roth IRANone during lifetimeMajor advantage over Traditional
SIMPLE IRA early withdrawal25% penalty in first 2 years10% after 2 years

Best For (Decision Guide)

ItemValueNotes
Traditional IRAHigher current tax bracketExpect lower taxes in retirement
Roth IRALower current tax bracketExpect higher taxes in retirement
SEP IRASelf-employed, high incomeEasy setup, high limits
SIMPLE IRASmall business (< 100 employees)Employer match required
Backdoor RothIncome too high for RothContribute to Traditional → convert

Tip: Use landscape orientation for wider tables

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