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Compare IRA Plans

Choosing the right Individual Retirement Account is one of the most important decisions you'll make for your financial future. Each IRA type carries its own tax treatment, contribution limits, and eligibility rules, and the account that's right for you depends on your income, your tax bracket today versus retirement, and whether you're saving as an individual, a business owner, or an employer. Below, compare IRA plans side by side and find the best IRA option for your goals with guidance from Christopher Jenkins, CPA, MTax, serving clients throughout Orange County.

Compare your IRA Options
Compare IRA Plans 2026 | CPA Financial

Compare IRA Plans at a glance

2026 LIMITS

Four ways to grow retirement savings with tax advantages. Find the account that fits your income, your bracket, and your goals.

Traditional

Tax break now
Tax Treatment
Pre-tax · grows tax-deferred, taxed at withdrawal
2026 Limit
$7,500$8,600 if age 50+
Who Contributes
You
Income Limits
None to contributeDeduction phases out if covered by a work plan
Best for: savers wanting a deduction today & a lower bracket later

Roth

Tax-free later
Tax Treatment
After-tax · qualified withdrawals are tax-free
2026 Limit
$7,500$8,600 if age 50+
Who Contributes
You
Income Limits
Yes — MAGI basedSingle <$153k · MFJ <$242k for full amount
Best for: younger savers & those expecting higher future taxes

SEP

Self-employed
Tax Treatment
Pre-tax · deductible, grows tax-deferred
2026 Limit
$72,000or 25% of compensation, whichever is less
Who Contributes
Employer / self-employed
Income Limits
None
Best for: self-employed & owners wanting high contributions

SIMPLE

Small business
Tax Treatment
Pre-tax · deductible, grows tax-deferred
2026 Limit
$17,000$21,000 if age 50+ · employer match required
Who Contributes
Employee + employer
Income Limits
None
Best for: small businesses (≤100 employees) wanting an easy plan
For general educational purposes only and not intended as tax or legal advice. 2026 figures shown; limits and income thresholds are subject to IRS adjustment. Securities & advisory services offered through LPL Financial, a Registered Investment Advisor. Member FINRA & SIPC.
Roth vs. Traditional IRA: Which Should You Choose?

Roth vs. Traditional IRA: Which Should You Choose?

The core question is when you want your tax break. A Traditional IRA gives you a deduction today and taxes withdrawals later, which favors savers who expect a lower tax rate in retirement. 

A Roth IRA is funded with after-tax dollars and delivers tax-free income later, which favors those who expect higher future tax rates or simply want tax certainty in retirement. Many savers benefit from holding both to diversify their future tax exposure.

Common IRA Mistakes to Avoid

An IRA is one of the most powerful tools for building retirement savings, but a few avoidable missteps can cost you growth, trigger penalties, or create an unexpected tax bill. Here are the mistakes we see most often.

  1. Over-contributing

    Limits apply across all your IRAs combined: $7,500 in 2026 ($8,600 if you're 50 or older). Exceeding it triggers a 6% excise tax on the excess each year until it's corrected.

  2. Missing the deadline

    You have until the April tax filing deadline, not December 31, to contribute for the prior year. Contributing early gives your money more time to compound.

  3. Choosing the wrong account

    A Traditional IRA gives you a deduction now; a Roth delivers tax-free income later. Picking one without weighing your current versus future tax bracket is a costly long-term error.

  4. Mishandling a rollover

    A direct trustee-to-trustee transfer stays tax-free, but taking the distribution yourself starts a 60-day clock. Miss it, and the full amount may become taxable.

  5. Forgetting Required Minimum Distributions

    Traditional, SEP, and SIMPLE IRAs require withdrawals starting at age 73, with a steep penalty for missing them. Roth IRAs have no RMDs during the owner's lifetime.

  6. Naming the wrong beneficiary

    Your IRA beneficiary designation overrides your will. Outdated or missing designations can send assets to the wrong person or through probate.

  7. Leaving cash uninvested

    Contributions that sit in cash miss out on years of potential growth. Make sure your money is actually allocated to investments that fit your timeline.

Avoiding these pitfalls is easier with a second set of eyes. Working with an experienced financial advisor can help you structure contributions, time rollovers, and coordinate IRA decisions with your overall tax picture.

Frequently Asked Questions

What is the main difference between Traditional and Roth IRAs?
A Traditional IRA offers potentially tax-deductible contributions and tax-deferred growth, with withdrawals taxed in retirement. A Roth IRA is funded with after-tax dollars, so qualified withdrawals are entirely tax-free.

Can I contribute to multiple IRA plans in the same year?
Yes. You can fund both a Traditional and a Roth IRA, but your combined contributions can't exceed the annual limit: $7,000 in 2025, or $8,000 if you're 50 or older.

Which IRA plan is best for self-employed individuals?
A SEP IRA is often ideal for the self-employed thanks to its high contribution ceiling. A SIMPLE IRA tends to suit small business owners who have employees and want an easy, low-cost plan.

Can high earners still get a Roth IRA?
If your income exceeds the Roth limits, a backdoor Roth strategy or a Roth conversion may let you access tax-free retirement growth. We can help you weigh the tax implications.

Start Planning Your Retirement Today

Contact Us Today

Choosing among IRA options involves more than comparing contribution limits. It means weighing your income, tax considerations, time horizon, and broader retirement goals together. As a CPA with a master's in taxation, Christopher Jenkins brings both financial and tax perspectives to that conversation. Contact us today to discuss the right IRA for you.