Individual retirement accounts (IRAs) play a critical role in building a secure financial future, offering tax benefits that can enhance long-term savings. Identifying whether you hold a Roth IRA or a Traditional IRA is essential, as they differ in taxation, contribution limits, and withdrawal rules. Knowing your account type helps you align your strategy with your financial goals. Here’s how to determine which type of IRA you have.
Reviewing Account Statements
Start by examining your account statements. These typically indicate the account type in the summary section. Contributions made with after-tax income suggest a Roth IRA, as these are not tax-deductible. Pre-tax contributions, on the other hand, point to a Traditional IRA, where contributions may reduce taxable income. Review any distributions as well—Roth IRAs allow tax-free withdrawals of contributions, while Traditional IRAs generally have taxes and penalties for early withdrawals.
Checking Tax Forms
Tax forms provide another way to identify your IRA type. IRS Form 5498 specifies contributions to your IRA and identifies whether the account is Roth, Traditional, SEP, or SIMPLE; if you’ve taken distributions, IRS Form 1099-R will detail the withdrawals.1Internal Revenue Service. Instructions for Forms 1099-R and 5498 (2025)
Contribution Eligibility Clues
Contribution rules can also help determine your IRA type. For Roth IRAs, income thresholds govern eligibility. In 2025, single filers can contribute fully if their modified adjusted gross income (MAGI) is under $150,000, with a phase-out from $150,000 to $165,000; for married filing jointly, the phase-out is $236,000 to $246,000; for married filing separately who lived with a spouse, contributions phase out up to $10,000.2Internal Revenue Service. Publication 590-A, Contributions to Individual Retirement Arrangements (IRAs)
Traditional IRAs have no income limits for making contributions, though tax deductibility may depend on participation in an employer-sponsored plan. Unlike older rules, you can contribute to a Traditional IRA at any age if you have eligible compensation.
Distribution Policies Indicators
Distribution rules often reveal the nature of your IRA. Traditional IRAs require Required Minimum Distributions (RMDs) starting at age 73, and failing to take enough may trigger a 25% excise tax (reduced to 10% if corrected within two years).3Internal Revenue Service. Retirement Topics – Required Minimum Distributions (RMDs)
Roth IRAs allow penalty-free withdrawals of contributions at any time, and they do not require RMDs during the account holder’s lifetime, which can be advantageous for estate planning.
Verifying With Your Provider
For definitive confirmation, contact your financial provider. They can verify whether you hold a Roth or Traditional IRA and provide details about your account. Providers can also help you understand how your IRA aligns with tax laws, contribution limits, and withdrawal rules, ensuring your retirement strategy is optimized for your goals.