Direct Answer

Complete eligibility and deduction checks before comparing tax rates. Then document the assumptions that would make Roth or Traditional more attractive. Re-run this checklist each year because MAGI, workplace coverage, filing status, account balances, and tax rules can change.

A. Contribution Eligibility

• I have enough taxable compensation, or a valid spousal IRA rule applies.
• I know my expected 2026 MAGI range.
• I checked whether a full, partial, or no direct Roth contribution is allowed.
• I understand that the 2026 limit of $7,500, or $8,600 for those age 50 and older, is combined across Roth and Traditional IRAs.

Source: IRS: Retirement Topics, IRA Contribution Limits.

B. Traditional IRA Deduction

• I know whether I am covered by a workplace retirement plan.
• I know whether my spouse is covered by a workplace plan.
• I checked the 2026 Traditional deduction phase-out for my filing status and coverage situation.
• I know whether my planned Traditional contribution would be full-deduction, partial-deduction, or nondeductible.
• If nondeductible, I understand that Form 8606 basis reporting can apply.

Sources: IRS: Publication 590-A, Contributions to Individual Retirement Arrangements and IRS: About Form 8606, Nondeductible IRAs.

C. Current Tax-Rate Assumptions

Record the rates you are using in this analysis:

• Current marginal federal rate: ___________
• Current marginal state rate: ___________
• Combined rate used in model: ___________

• I used my marginal tax rate, not my average effective tax rate.
• If the deduction crosses a bracket boundary, I modeled the split correctly.

D. Future Tax-Rate Assumptions

Record the range you consider plausible for future combined marginal rates: ___________ to ___________

Note why that range is plausible for your situation.

• I considered pension income expectations.
• I considered taxable Social Security income.
• I considered future required minimum distributions (RMDs) from pre-tax accounts.
• I considered retirement state income tax treatment.
• I considered a surviving-spouse single-filer scenario if relevant.
• I did not assume that future tax law is certain.

E. Contribution-Cap Economics

• I am or am not likely to max the IRA this year.
• Roth income tax would or would not be paid from money held outside the account.
• Traditional tax savings would be: invested, placed in HSA, applied to debt payoff, held in emergency reserve, spent, or other.
• My comparison uses: equal nominal contribution, equal pre-tax household cost, or both bases.

F. Flexibility Factors

Rate each factor as Low, Medium, or High importance for your situation:

G. Household Coordination

• Employer match has been considered, including whether the match requires a specific contribution type.
• The existing Traditional versus Roth balance in workplace plans (401(k), 403(b)) is included.
• Spouse accounts and their pre-tax versus after-tax character are included.
• Existing Traditional, SEP, and SIMPLE IRA balances are known before any backdoor Roth plan, because of the pro-rata rule.
• Taxable investment accounts and emergency reserves are considered in the overall picture.
• Pension income expectations are included.
• Planned retirement state is included if its income tax treatment of IRA withdrawals differs materially.
• Estate and beneficiary objectives are included if material to the account-type choice.

H. Decision Record

Factors Currently Favoring Roth

1. _______________________________________________
2. _______________________________________________
3. _______________________________________________

Factors Currently Favoring Deductible Traditional

1. _______________________________________________
2. _______________________________________________
3. _______________________________________________

Unresolved Rule or Assumption

_______________________________________________

What Would Reverse My Current Conclusion?

_______________________________________________

Next Review Date

_______________________________________________

Stop Signs: Resolve These Before Acting

If any of the following applies, resolve the underlying rule or uncertainty before making a contribution, conversion, or rollover decision:

• Expected MAGI is close to a Roth or Traditional phase-out boundary.
• I cannot determine whether the Traditional contribution is deductible.
• I have prior nondeductible IRA contributions but cannot locate my Form 8606 records.
• I am considering a backdoor Roth and I hold substantial pre-tax Traditional, SEP, or SIMPLE IRA balances.
• A Roth conversion could materially affect another tax threshold or means-tested benefit.
• The tax dollars involved are large enough that professional review is prudent.

If any stop sign applies, the correct next step is to resolve the specific rule or uncertainty, not to arrive at an account verdict before the facts are clear.

Annual Review Trigger List

Re-run this checklist when any of the following occurs:

• New job or change in workplace retirement plan coverage;
• Marriage or divorce;
• Large bonus or other significant income event;
• Major income increase or decrease;
• Self-employment begins or ends;
• Move to another state with different IRA withdrawal tax treatment;
• Retirement date changes materially;
• Pension election changes;
• Inheritance or major account rollover;
• Annual IRS contribution limits and phase-out ranges are updated.

References

1. IRS: Retirement Topics, IRA Contribution Limits. Accessed 2026-09-09.
2. IRS: Publication 590-A, Contributions to Individual Retirement Arrangements (IRAs). Accessed 2026-09-09.
3. IRS: Publication 590-B, Distributions from Individual Retirement Arrangements (IRAs). Accessed 2026-09-09.
4. IRS: About Form 8606, Nondeductible IRAs. Accessed 2026-09-09.
5. IRS: Instructions for Form 8606. Accessed 2026-09-09.
6. IRS: Retirement Plan and IRA Required Minimum Distributions FAQs. Accessed 2026-09-09.

Educational worksheet only. Verify current rules with a qualified tax professional before making any contribution, conversion, or tax-filing decision.