Which IRA should I contribute to?

Check your eligibility

For which tax year are you contributing?

  • 2024
  • 2025

Tax filing status

  • Single
  • Married filing jointly
  • Married filing separately
  • Head of household

What’s your Household Modified Adjusted Gross Income (MAGI) for the year?
Don’t know your MAGI?

Most people don’t. It’s an income-related number that determines your eligibility for certain tax benefits, but it’s not listed on your tax return – you’ll have to crunch the numbers yourself or estimate it. Get instructions.

Date of birth
Are you or your partner covered by a 401(k) or other company retirement plan?
Box 13 of your W-2 will be checked if you’re covered.

  • Yes
  • No

Do you have money in a traditional IRA?
There may be tax implications for some types of IRAs if you already have money in a traditional IRA from previous contributions or rollovers.

  • Yes
  • No

Calculate
To get an IRA recommendation for this tax year, plug in your information so we can calculate your eligibility.

Roth vs. Traditional IRAs

IRAs are tax-advantaged investment accounts to help you save for retirement. The biggest difference between Roth and Traditional IRAs is how and when you get a tax break.

Roth IRAs

You contribute post-tax dollars today and your earnings grow tax-free as long as you want. Unlike Traditional IRAs, you can make withdrawals of contributions early without a penalty and there are no minimum withdrawal requirements in retirement.

Traditional IRAs

You get a tax break today with tax-deductible contributions. You’ll pay taxes on earnings when you withdraw in retirement and you’ll have to start withdrawing minimum amounts at age 72.

Backdoor Roth IRAs

You sidestep the income limits and take advantage of tax-free growth by converting a Traditional IRA into a Roth IRA.

Tip: You can contribute to a traditional and a Roth IRA during the same year, as long as the total amount doesn’t exceed the maximum contribution limit.

Eligibility factors

Income and filing status

Your household income determines how much you can contribute to a Roth IRA and how much of your Traditional IRA contributions you can deduct from taxes. Income and deduction limits change year to year. View contribution limits.

Company retirement plan

Traditional IRA deductions are only restricted if you or your partner are covered by a retirement plan at work such as a 401(k).

Age

Above age 50, you can contribute an extra $1,000. You can contribute to an IRA at any age as long as you’re earning income.

Correcting overcontributions

Don’t worry! It happens all the time and we’re here to help you correct overcontributions.

When you file your taxes, you’ll know if you passed your contribution limit for a Roth IRA or deduction limit for a Traditional IRA. In either case, you can withdraw the excess penalty-free before the tax deadline.

If you need support with an excess contribution removal, contact us.

Disclosures

Assumptions

  • This IRA calculator assumes you know or can accurately calculate your Modified Adjusted Gross Income (MAGI) for a future contribution year. This IRA calculator’s accuracy depends on your ability to forecast your MAGI in a given contribution year. Variation between your estimated and actual MAGI could result in substantially different results.
  • In the event that you are eligible for both Roth IRA and Traditional IRA contributions, we prioritize Roth IRA contribution. This calculator does not take into account your tax rate in retirement, which is the main factor in deciding between a Traditional IRA and a Roth IRA when both options are available. We prioritize Roth IRA contributions because we believe Roth IRAs perform better over the long-term as earnings are not taxed in retirement.
  • When deciding between a contribution to a taxable account with tax-loss harvesting or non-deductible Traditional IRA, we prioritize contributions to a taxable account with tax-loss harvesting. When you make a non-deductible contribution to a Traditional IRA, you pay taxes on that contribution twice (once upfront because you contribute with after-tax funds, and again in retirement when you withdraw those funds).
  • If you are eligible for a partial contribution to a Roth IRA and a full contribution to a Traditional IRA, we recommend the full contribution.
  • If you do not have funds in a Traditional IRA and are neither eligible to contribute to a Roth IRA directly nor deduct Traditional IRA contributions, we prioritize a backdoor Roth contribution.
  • This IRA calculator assumes that Congress and the IRS will continue to permit backdoor Roth conversions. While Congress has stated that it intends to continue allowing backdoor Roth conversions, backdoor Roth conversions may not be permitted in the future.