Roth IRA vs Traditional IRA: Which One Should You Open First?

Choosing between a Roth IRA and a Traditional IRA usually comes down to taxes. Pay taxes now with Roth or defer taxes with Traditional. Every other detail is secondary.

Roth First Usually Fits When

• you are early in your career
• your current tax bracket is modest
• you value tax-free withdrawals later

Traditional First Usually Fits When

• your current income is high
• you need the deduction today
• you expect a lower tax rate in retirement

If you cannot answer the tax-rate question with confidence, Roth is often the simpler default because the tradeoff is easier to understand and harder to misuse.