Why a Roth IRA Might Be Your Best Move in 2026

As 2026 approaches, many people are thinking about pumping more money into retirement accounts. But here’s the thing — not all retirement accounts are created equal. The difference between a traditional IRA and a Roth IRA isn’t just technical jargon; it fundamentally changes how your money grows and what you actually get to keep. And when it comes to the question everyone asks: do you pay taxes on Roth IRA gains? The answer is a straightforward no. With a Roth IRA, your investment gains grow completely tax-free, and you can withdraw them without owing a single dollar in taxes. That’s the opposite of a traditional IRA, where you get the tax break upfront but pay taxes later.

So should you open a Roth IRA in 2026? Here are three situations where it absolutely makes sense.

You’re Currently in a Lower Tax Bracket

The biggest sacrifice with a Roth IRA is losing that immediate tax deduction. For high earners, that stings. But if you’re in your 20s or early 30s with an entry-level salary, this is actually the perfect time to lock in your tax advantages.

Think about it this way: your income probably won’t stay low forever. As your career grows, you’ll likely move into higher tax brackets down the road. By funding a Roth IRA while you’re in that lower bracket now, you’re essentially getting the best of both worlds — you skip paying taxes on money that will multiply many times over, all at today’s lower rates. Years from now, you’ll be grateful you made this choice.

Tax Rates Could Be Rising Tomorrow

Nobody knows what tax rates will look like in 10 or 20 years. That uncertainty is actually one of the strongest arguments for going the Roth route today. When you contribute to a Roth IRA, you’re locking in your current tax rate on that money. The brilliant part? When retirement comes and you start withdrawing, none of it gets taxed — no matter what tax rates have climbed to by then.

With a traditional IRA, you’re essentially betting that tax rates will be lower in the future. That’s not always a safe assumption. With a Roth, you’ve already paid your dues, so future tax changes don’t touch your withdrawals. That’s peace of mind you can actually quantify.

You Want Control Over Your Money Later

Here’s something most people don’t think about until they’re already retired: forced withdrawals. Traditional IRAs require you to take required minimum distributions (RMDs) starting at age 73 or 75, depending on when you were born. You don’t get a choice — the IRS essentially tells you how much you have to pull out, whether you need it or not.

A Roth IRA? No RMDs at all. If you retire and realize your Social Security is more generous than you expected, or your side hustle is still generating income, you can simply leave your Roth account alone. Your money keeps growing tax-free for as long as you want it to. Better yet, if estate planning matters to you, a Roth is a superior tool. You can pass it to your heirs without the RMD pressure, letting their inheritance continue compounding tax-free.

The Bottom Line

Choosing between a traditional IRA and a Roth IRA isn’t about picking the universally “better” option — it’s about what works for your specific situation right now. If any of these three scenarios describe you, a Roth IRA deserves serious consideration for your 2026 contributions. The tax-free growth and flexibility you gain could compound into real wealth down the line.