Learn whether you can have a traditional and Roth IRA at the same time, how contribution limits work, and what rules determine your eligibility with Vanguard.
Can you have both a traditional and Roth IRA?
Key takeaways
- You can have both a traditional and a Roth IRA if you meet IRS eligibility rules, but IRA contribution limits apply across all accounts combined, not per account.
- IRA eligibility and contribution limits depend on factors like earned income, age, and tax-filing status, which may affect how much—or whether—you can contribute to a Roth IRA.
- Understanding the difference between traditional and Roth IRAs can help you choose the right mix of tax‑deferred and after-tax savings for retirement.
Understanding traditional and Roth IRAs
A traditional IRA allows you to contribute pre-tax or tax-deductible money that can grow tax-deferred. A Roth IRA holds after-tax money you can withdraw tax-free. They sound fundamentally different, but both are tax-advantaged accounts designed to help you save for retirement. When deciding between the two, you'll want to consider whether you want to pay taxes now or later. They share other similarities too:
1. No age limit
You can contribute to both a Roth IRA and a traditional IRA at any age as long as you're otherwise eligible. However, when you reach age 73,1 you'll have to start taking required minimum distributions (RMDs) from your traditional IRA.
2. Contribution limits
You typically need earned income to contribute to an IRA. Depending on your taxable income, your contribution limits and the amount you'll be able to deduct may be lower. If you're married and your spouse earns low or no annual wages, they may be able to open a spousal IRA to boost your retirement savings as a couple.
On the other hand, individuals may not be able to contribute directly to a Roth IRA because they earn too much income. However, for higher-income earners looking to fund a Roth IRA, a backdoor Roth conversion offers another option.
Here's how it works: You make a nondeductible contribution to a traditional IRA, then convert that amount to a Roth IRA. You'll owe taxes on any pre-tax amounts converted, but once the money is in the Roth IRA, it can grow tax-free and be withdrawn tax-free in retirement, as long as certain conditions are met. A backdoor Roth IRA conversion can be useful for investors who want to benefit from tax-free growth and withdrawals but aren't eligible to contribute to a Roth IRA because their income exceeds the IRS limit.
3. Contribution deadline
Whether you're contributing to a traditional IRA or a Roth IRA, your contribution must be made by the tax-filing deadline for the tax year. For the 2025 tax year, the deadline is April 15, 2026. For the 2026 tax year, the deadline is April 15, 2027.
4. Transfer or rollover
You can transfer your IRA to the same type of IRA through a direct transfer. You can also withdraw money from your account for 60 days as long as you roll it over into the same or a similarly registered IRA. You can use this 60-day rollover option once every 365 days. When you use the 60-day rollover option, taxes may have been withheld from the withdrawal, so you'll have to use other funds to roll over the full amount of the distribution.
At some point, you may wish to convert money from a traditional IRA to a Roth IRA—a process known as a Roth conversion. The converted amount is generally taxable in the year of the conversion, but future qualified withdrawals from the Roth can be tax-free. Learn more about how to convert an IRA.
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Learn the differences between traditional and Roth IRAs
Traditional IRA
With a traditional IRA, you may be able to deduct your contributions for the tax year in which you make them. Keep in mind that the deductible amount could be reduced or eliminated if you or your spouse are covered by an employer's retirement plan. When it's time to start withdrawing, your deductible contributions and earnings are taxed as ordinary income. If you don't qualify for deductible contributions, you can make a nondeductible contribution; the nondeductible portion won't be taxed upon withdrawal but the earnings will. Withdrawals work like this:
- If you withdraw from your traditional IRA before you've reached age 59½, you'll pay ordinary income tax on the pre-tax portion of the distribution and a 10% early distribution penalty (unless an exception applies).
- If you withdraw after you've reached 59½, you won't be penalized, but you'll still pay ordinary income tax on the pre-tax portion of the distribution.
- When you reach age 73,1 you'll be required to start taking annual distributions from your traditional IRA. The amount you withdraw for your required minimum distribution (RMD) is calculated based on your life expectancy and the balance of your account at the end of the previous year.
Roth IRA
Contributions you make to your Roth IRA aren't tax-deductible. This means withdrawals of your Roth contributions (your "basis") will always come out tax- and penalty-free, even if you haven’t reached retirement. You can also make tax-free withdrawals of your earnings if you've reached age 59½ and you've owned your Roth IRA for at least 5 years.2 There are no RMDs for a Roth IRA because your contributions have already been taxed—meaning you can withdraw your savings flexibly in retirement.
Learn more about which IRA is right for you
Can I contribute to both a Roth and traditional IRA?
Anyone with earned income (or a spouse with earned income) can contribute to a traditional IRA. Earned income can include wages, salaries, tips, or self-employment income. However, the amount you can contribute to a Roth IRA could be reduced—or even eliminated—based on your modified adjusted gross income (MAGI).
If you can't make the maximum Roth IRA contribution because your MAGI exceeds the upper limit of the annual income range, a backdoor Roth conversion may be right for you.
Contribution limits across IRAs
The IRS sets annual IRA contribution limits based on your age, and those limits apply across all your IRAs combined.
- If you're under age 50: You can contribute up to the standard annual IRA limit.
- If you're age 50 or older: You may be eligible to make an additional catch‑up contribution, allowing you to save more each year as you approach retirement.
These limits are aggregate limits, meaning your total contributions across all your traditional and Roth IRAs can't exceed the IRS maximum for the year—even if you have multiple accounts. The IRS reviews and may update IRA contribution limits annually, so the allowable amounts can change over time. For the most current limits and details on how contributions are aggregated, see the IRS guidance on annual retirement account limits.
To understand how much you may be able to contribute based on your age and circumstances, use Vanguard's IRA Contribution Calculator.
Common misconceptions about having multiple IRAs
Myth: You're only allowed to have one IRA.
Fact: If you meet IRS eligibility requirements, you can contribute to more than one type of IRA, including both a traditional and a Roth IRA.
Myth: Contribution limits apply to each IRA separately.
Fact: IRS limits apply across all your IRAs combined (even if they’re at different companies), so having multiple accounts doesn't increase how much you can contribute each year.
Summary
Whether you're eligible to contribute to a Roth IRA, a traditional IRA, or both, opening an IRA is a step toward a better retirement. Contributing as soon as you can gives your savings time to reap the benefits of compounding—where your investment earnings generate their own earnings. Your eligibility to contribute may depend on your income, so if you aren't sure what to do, reach out to a tax advisor to help you make an informed decision.
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