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There are two main types of IRAs, traditional and Roth, and several variations built on them. The traditional and Roth versions decide when you pay taxes. The variations, SEP, SIMPLE, spousal, rollover, inherited, and self-directed IRAs, change who can contribute, how much, or what the account can hold.
Picking the right one changes how much you pay in taxes, and when. This guide compares every major individual retirement account type with 2026 limits, including self-directed IRAs that hold physical gold and silver.
Key Takeaways
- Traditional IRAs give you a possible tax deduction now and taxable withdrawals later. Roth IRAs work the opposite way.
- SEP and SIMPLE IRAs are built for small businesses and the self-employed, with higher contribution limits.
- Rollover, spousal, and inherited IRAs follow traditional or Roth tax rules but exist for specific situations.
- A self-directed IRA can hold alternative assets, including IRS-approved gold and silver.
- You can own more than one type of IRA, but traditional and Roth contributions share one annual limit.
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How Many Types of IRAs Are There?
Most guides count eight common IRA types: traditional, Roth, SEP, SIMPLE, spousal, rollover, inherited, and self-directed. Only two tax structures sit underneath them. Every IRA is taxed either like a traditional IRA or like a Roth IRA.
|
Who It’s For |
Tax Treatment |
2026 Contribution Limit |
|
|
Traditional IRA |
Anyone with earned income |
Contributions may be deductible; withdrawals taxed |
$7,500, or $8,600 at 50+ |
|
Roth IRA |
Earners under the income limits |
After-tax contributions; qualified withdrawals tax-free |
$7,500, or $8,600 at 50+ |
|
SEP IRA |
Self-employed people and small business owners |
Employer contributions deductible; withdrawals taxed |
Lesser of 25% of compensation or $72,000 |
|
SIMPLE IRA |
Employees of small businesses |
Pre-tax salary deferrals; withdrawals taxed |
$17,000, plus $4,000 at 50+ |
|
Spousal IRA |
A non-working or low-earning spouse |
Traditional or Roth rules |
Same as a traditional or Roth IRA |
|
Rollover IRA |
Anyone leaving a 401(k) or other workplace plan |
Keeps the old plan’s tax status |
No limit on rolled-over amounts |
|
Inherited IRA |
Beneficiaries of an IRA owner |
Follows the original account’s tax status |
No new contributions |
|
Self-Directed IRA |
Investors who want alternative assets |
Traditional or Roth rules |
Same as a traditional or Roth IRA |
Limits in the table come from the IRS: $7,500 for traditional and Roth IRAs with a $1,100 catch-up at 50+, $17,000 for SIMPLE IRAs with a $4,000 catch-up, and $72,000 for SEP IRAs.
Weighing precious metals for your retirement? Download our Gold and Silver Investment Guide for a plain-English look at how metals fit into an IRA.
Traditional IRA
A traditional IRA lets your investments grow tax-deferred, and you pay income tax when you withdraw the money in retirement. Contributions may be tax-deductible, which lowers your taxable income in the year you contribute.
If you or your spouse has a workplace retirement plan, the deduction phases out at higher incomes, for example between $129,000 and $149,000 for married couples filing jointly when the contributor is covered. If neither of you has a workplace plan, the full contribution is generally deductible.
Withdrawals before age 59½ usually trigger a 10% additional tax on top of income tax. Exceptions include up to $10,000 for a first-time home purchase, total and permanent disability, and qualified higher education expenses. Traditional IRA owners must start required minimum distributions at age 73.
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Roth IRA
A Roth IRA is funded with after-tax dollars, and qualified withdrawals in retirement are tax-free, including the growth. It’s often the better choice if you expect to be in a higher tax bracket later than you are today.
Roth contributions phase out at higher incomes: between $153,000 and $168,000 for single filers and between $242,000 and $252,000 for married couples filing jointly in 2026. Roth IRAs also have no required minimum distributions during the owner’s lifetime, which makes them useful for passing savings to heirs.
Traditional vs. Roth IRA: What’s the Difference?
The main difference between a traditional and a Roth IRA is when you pay taxes. A traditional IRA may give you a deduction now and taxes withdrawals later. A Roth IRA taxes the money now and lets qualified withdrawals come out tax-free.
|
Traditional IRA |
Roth IRA |
|
|
When You Pay Taxes |
On withdrawals |
On contributions |
|
Tax Deduction Now |
Often, depending on income and workplace plan |
No |
|
Income Limit to Contribute |
None |
Yes, phases out at higher incomes |
|
Required Minimum Distributions |
Yes, starting at 73 |
None during the owner’s lifetime |
|
Best Fit |
Expect a lower tax rate in retirement |
Expect a higher tax rate in retirement |
Ready to Learn More?
Schedule a complimentary strategy call with one of our specialists today.
No pressure, no sales-y jargon, just clear and honest guidance to help you invest with confidence.
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IRAs for Small Businesses and the Self-Employed
SEP and SIMPLE IRAs let small businesses and self-employed people save more than a standard IRA allows, with less paperwork than a 401(k).
SEP IRA
A Simplified Employee Pension, or SEP IRA, is funded by the employer, including a self-employed person contributing for themselves. The limit is the lesser of 25% of compensation or $72,000 for 2026. Employees don’t make their own salary deferrals, and the employer must contribute the same percentage for every eligible employee.
SIMPLE IRA
A Savings Incentive Match Plan for Employees, or SIMPLE IRA, is designed for small businesses. Employees defer part of their salary, up to $17,000 in 2026, and employers must either match employee contributions or make a fixed contribution for every eligible worker. Setup and upkeep cost less than a traditional 401(k).
Other Types of IRAs
Spousal, rollover, and inherited IRAs aren’t separate tax structures. They’re traditional or Roth IRAs set up for a specific situation.
Spousal IRA
A spousal IRA lets a working spouse contribute to an IRA for a spouse with little or no income, as long as the couple files jointly. Each spouse can then save up to the annual limit in their own account.
Rollover IRA
A rollover IRA holds money moved from a 401(k), 403(b), or other workplace plan, usually after you leave a job. A direct rollover avoids the 20% withholding that applies when a workplace plan pays the money to you first. Rollover IRAs are also the most common way to fund a gold IRA, and our 401(k) to gold IRA rollover guide walks through the steps.
Inherited IRA
An inherited IRA holds retirement savings passed to a beneficiary after the owner’s death. You can’t add new contributions, and most non-spouse beneficiaries must follow specific withdrawal timelines. Spouses often have the extra option of treating the account as their own.
Ready to Learn More?
Schedule a complimentary strategy call with one of our specialists today.
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What Is a Self-Directed IRA?
A self-directed IRA is a traditional or Roth IRA that can hold alternative assets that most brokerage IRAs can’t, such as real estate, private companies, and precious metals. It requires a custodian that specializes in those assets. You direct the investments, and the custodian keeps the account compliant with IRS rules.
Self-directed IRAs still follow the same contribution limits and tax rules as any other IRA. Collectibles like art, antiques, and most rare coins aren’t allowed.
Gold and Silver IRAs
A gold or silver IRA is a self-directed IRA that holds IRS-approved physical precious metals. Gold held in an IRA generally must be at least 99.5% pure, and silver must be at least 99.9% pure. The metals are stored in an approved depository, not at home. Learn more in What Is a Gold IRA? and Is Silver a Good Long-Term Investment?
Noble Gold helps investors open a Gold IRA or Silver IRA, connects them with a custodian, and coordinates the rollover. The Gold and Silver IRA minimum investment is $20,000, with flat annual fees of $125 for maintenance and $160 for storage.
Want to see how metals would fit into your IRA? Schedule a complimentary gold investing strategy session with a Noble Gold specialist.
Which Type of IRA Is Best for You?
The best type of IRA depends on your income, your tax outlook, how you earn money, and what you want to own. Many people use more than one.
- Choose a traditional IRA if you want a deduction now and expect a lower tax rate in retirement.
- Choose a Roth IRA if you’re under the income limits and expect a higher tax rate later.
- Choose a SEP or SIMPLE IRA if you’re self-employed or run a small business.
- Choose a rollover IRA if you’re leaving a job and want more investment choices than your old plan offered.
- Choose a self-directed IRA if you want to diversify with physical gold, silver, or other alternative assets.
Because IRA rules affect your taxes, talk with a tax professional before making a large contribution, conversion, or rollover.
Ready to Learn More?
Schedule a complimentary strategy call with one of our specialists today.
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Diversify Your Retirement With Noble Gold
If you already have a traditional IRA, Roth IRA, or old 401(k), you can move part of it into physical gold or silver without starting over. Noble Gold’s U.S.-based specialists explain your options with no pressure and no sales-y jargon, just clear and honest guidance.
Open an account to get started, or call (877) 646-5347 to speak with a specialist today.
Frequently Asked Questions
What Are the Different Types of IRAs?
The different types of IRAs are traditional, Roth, SEP, SIMPLE, spousal, rollover, inherited, and self-directed IRAs. Traditional and Roth IRAs set the tax treatment, while the others serve specific situations, like self-employment or an inheritance. Self-directed IRAs, including gold and silver IRAs, can hold alternative assets.
How Many Types of IRAs Are There?
There are eight common types of IRAs, but only two tax structures: traditional and Roth. Every other type, such as a SEP, SIMPLE, or rollover IRA, is taxed like one of those two.
What Types of IRA Contributions Are There?
IRAs accept regular annual contributions, catch-up contributions for people 50 and older, rollovers from workplace plans, and transfers from other IRAs. Regular and catch-up contributions count toward the annual limit. Rollovers and direct transfers don’t.
Can I Have More Than One Type of IRA?
Yes. You can own a traditional IRA, a Roth IRA, and a self-directed IRA at the same time. Your traditional and Roth contributions share one annual limit of $7,500, or $8,600 if you’re 50 or older, in 2026.
Can I Hold Gold in a Roth IRA?
Yes. A self-directed Roth IRA can hold IRS-approved gold and silver, and qualified withdrawals are tax-free like any other Roth IRA. Noble Gold helps investors set up traditional and Roth precious metals IRAs.
What Is the Difference Between an IRA and a 401(k)?
An IRA is an account you open yourself, while a 401(k) is sponsored by an employer. 401(k)s have much higher contribution limits and may include an employer match, but IRAs usually offer more investment choices. Many people roll a 401(k) into an IRA after leaving a job.
Can I Roll My 401(k) Into a Gold IRA?
Yes. A direct rollover moves your 401(k) into a self-directed gold IRA without taxes or penalties, as long as the funds go straight from your old plan to the new custodian. Noble Gold coordinates the transfer, and you can schedule a complimentary strategy session to review your options.
