Roth vs Traditional IRA Calculator
Compare the long-term outcomes of Roth and Traditional IRAs based on your current tax rate and expected retirement tax rate.
💡 Key insight: If your tax rate will be lower in retirement, Traditional wins. If it will be higher, Roth wins. At the same rate they'd be even, but this calculator gives Roth a small edge because Traditional's invested tax savings pay capital-gains tax (assumed 15%).
Recommended
Traditional IRA
$26,400 more at retirement
Roth IRA
$762,482
Tax-free withdrawals
$2,542/mo income
Traditional IRA
$788,881
After 18% tax, plus invested tax savings
$2,630/mo income
Traditional: Annual Tax Savings Now
$1,800
24% deduction on contributions
Roth contributions are after-tax but grow and withdraw tax-free. Traditional contributions are pre-tax (lowering your bill now) but taxed on withdrawal. 2026 IRA limit: $7,500 ($8,600 if 50+).
Model Roth conversions year by year
See the federal and state tax on every withdrawal and Roth conversion across your whole retirement
Try it freeNo signup requiredRoth vs Traditional: What You Need to Know
What's the key difference?
With a Traditional IRA, you contribute pre-tax dollars (reducing your taxable income today) and pay taxes when you withdraw in retirement. With a Roth IRA, you contribute after-tax dollars (no deduction today) but withdrawals in retirement are completely tax-free - including all investment gains.
When does a Roth win?
A Roth IRA typically comes out ahead if you expect your tax rate in retirement to be higher than it is today. This is common for younger earners early in their careers, people who expect significant income growth, and anyone who believes tax rates will rise in the future. Roth IRAs also have no Required Minimum Distributions (RMDs), making them excellent for estate planning.
Can I contribute to both?
Yes - you can split contributions between Roth and Traditional IRAs, as long as your combined total doesn't exceed the annual limit ($7,500 in 2026, or $8,600 if you're 50+). Many financial planners recommend "tax diversification" - having both pre-tax and after-tax retirement accounts so you can manage your tax bracket flexibly in retirement.
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