Who Should Use a Traditional IRA
The plain answer
Section titled “The plain answer”A Traditional IRA may fit if you want a possible tax deduction now and expect withdrawals to be taxed at a lower rate in retirement. It can also be useful when you do not have a retirement plan at work or want another place to save after using an employer plan.
The deduction is not automatic. Your income, filing status, and access to a workplace retirement plan determine whether your contribution is fully deductible, partly deductible, or not deductible.
How it actually works
Section titled “How it actually works”For 2026, the deduction phaseout ranges for someone covered by a workplace retirement plan are:
| Filing status | Modified adjusted gross income phaseout |
|---|---|
| Single or head of household | $81,000 to $91,000 |
| Married filing jointly, contributor covered at work | $129,000 to $149,000 |
| Married filing jointly, contributor not covered but spouse covered | Pending |
Below the applicable range, the contribution may be fully deductible. Inside the range, the deduction may be partial. Above it, the contribution is generally nondeductible. You can still contribute if you otherwise qualify, but you must track the after-tax basis.
What this means for you
Section titled “What this means for you”A Traditional IRA is worth considering when at least one of these applies:
- You qualify for a full or partial deduction.
- You expect your tax rate in retirement to be lower than it is today.
- You do not have a retirement plan through work.
- You want tax-deferred growth and understand that qualified withdrawals will be taxable.
Compare the current deduction with the Roth IRA’s tax-free qualified withdrawals. If the Traditional IRA contribution would be nondeductible, compare that choice with other retirement accounts before contributing.
Common mistakes
Section titled “Common mistakes”- Assuming every Traditional IRA contribution is deductible.
- Using gross income instead of modified adjusted gross income to check the phaseout.
- Ignoring a spouse’s workplace plan coverage when filing jointly.
- Failing to report and track nondeductible contributions.
- Treating a contribution as a deduction before confirming eligibility for 2026.
Related pages
Section titled “Related pages”Educational content, not personalized financial, tax, or legal advice. No affiliate relationships. Figures are for tax year 2026 and change annually.Read the full disclaimer.