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Deep Dive: IRS Publication 590 Explained

IRS Publication 590 is the definitive guide to Individual Retirement Arrangements (IRAs), covering everything from contribution limits and eligibility rules to distribution requirements and tax treatment. Split into two parts — Publication 590-A (contributions) and Publication 590-B (distributions) — it is the single most important tax document for the roughly 70 million Americans who hold IRA accounts. For the 2026 tax year, several key thresholds have changed. Traditional and Roth IRA contribution limits remain at $7,000 ($8,000 for those aged 50 and over), but income phase-out ranges for deductibility and Roth eligibility have been adjusted upward for inflation. Understanding these rules can mean the difference between maximising your retirement tax benefits and leaving money on the table. Whether you are deciding between a Traditional IRA and a Roth IRA, planning required minimum distributions in retirement, or considering a backdoor Roth conversion, Publication 590 provides the authoritative rules. This guide distills the essential information investors need to know.

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Deep Dive: Roth IRA vs Traditional IRA

Choosing between a Roth IRA and a Traditional IRA is one of the most consequential decisions in retirement planning — and it ultimately comes down to a single question: do you want your tax break now, or later? With the Federal Reserve having cut rates to 3.64% as of January 2026 and inflation moderating near 2.5%, the interest rate environment adds a new dimension to this choice. Both account types let you invest up to $7,000 in 2026 ($8,000 if you're 50 or older), but the tax treatment differs fundamentally. A Traditional IRA gives you a tax deduction upfront — your contributions reduce your taxable income in the year you make them, and your investments grow tax-deferred until you withdraw them in retirement. A Roth IRA flips that equation: you contribute after-tax dollars today, but your money grows tax-free and you pay zero tax on qualified withdrawals in retirement. Neither is universally better. The right choice depends on your current income, your expected retirement tax bracket, and how many years your money has to compound. This guide breaks down every meaningful difference — contribution rules, income limits, withdrawal flexibility, required minimum distributions, and conversion strategies — so you can make an informed decision based on your specific financial situation in 2026.

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