Roth vs Traditional IRA Calculator
Enter your contribution, tax rates, and years to retirement to see which IRA leaves you with more money after taxes. Includes a year-by-year projection table.
All calculations run in your browser. No data is sent anywhere.
Your inputs
Comparison Summary
| Years until retirement | — |
|---|---|
| Total contributions | — |
| Roth balance at retirement | — |
| Traditional balance at retirement | — |
| Roth after-tax value | — |
| Traditional after-tax value | — |
| Advantage | — |
How the Comparison Works
The core math
Both accounts grow at the same rate. The difference is the tax timing. For the Roth, your contribution is reduced by your current tax rate first (you already paid tax), then it grows and is withdrawn tax-free. For the Traditional, the full pre-tax contribution grows, but your retirement tax rate is applied on withdrawal. If your retirement rate equals your current rate, both produce the same result. The Roth wins if your rate rises; Traditional wins if it falls.
What tax rate to use
Use your marginal federal tax bracket for the "current tax rate" — this is the rate on the last dollar you earn. For retirement, estimate your marginal bracket from expected Social Security, pension, RMDs, and other income. If uncertain, many planners use the same rate for both (breakeven) or assume retirement rates will be modestly lower if you expect to reduce spending. The uncertainty is exactly why diversifying across both account types is popular.
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Open calculator →FAQ
What is the main difference between Roth and Traditional IRA?
Timing of taxes. Traditional IRA contributions are pre-tax — you get a tax deduction now and pay tax on withdrawals later. Roth IRA contributions are after-tax — no deduction now, but all qualified withdrawals (including growth) are tax-free. If your tax rate is lower now than in retirement, Roth wins. If higher now, Traditional wins.
When is a Roth IRA better?
Roth is generally better when you're in a lower tax bracket now than you expect to be in retirement. Common scenarios: young earners early in their careers, anyone expecting significant retirement income from Social Security, pensions, or RMDs, or anyone who believes tax rates will rise in the future. The Roth also has no Required Minimum Distributions (RMDs), giving more flexibility in retirement.
What are the 2024 IRA contribution limits?
The 2024 IRA contribution limit is $7,000 per year ($8,000 if age 50 or older). This is the combined limit across all your IRAs. Roth IRA eligibility phases out at higher incomes: for 2024, the phase-out starts at $146,000 (single) and $230,000 (married filing jointly).
Why does the retirement tax rate matter so much?
The Roth vs. Traditional choice is fundamentally a bet on your future tax rate. Equal rates produce equal after-tax results; Roth wins if rates rise, Traditional wins if they fall. Because future tax law is uncertain, many financial planners recommend contributing to both account types to hedge the uncertainty — a strategy called tax diversification.