Roth vs Traditional IRA Calculator

How this calculator works

The Roth vs Traditional question is really a bet on tax rates: pay tax now (Roth) or pay tax later (Traditional). With a Traditional IRA, contributions reduce your taxable income today, the money compounds untouched, and you pay ordinary income tax on every dollar you withdraw in retirement. With a Roth, you contribute after-tax dollars, but qualified withdrawals — contributions and all growth — are tax-free forever. This calculator runs both scenarios with your numbers: same annual contribution, same return, same timeline, then taxes each side appropriately so you compare true after-tax spending power.

The rule of thumb the math reveals: if your retirement tax rate will be lower than today's, Traditional usually wins; if it will be higher, Roth wins; if the rates are equal, the two tie exactly — the calculator will show a $0 difference, which surprises most people. Beyond the headline number, remember the structural differences: Roth IRAs have no required minimum distributions and let your heirs inherit tax-free, while Traditional IRAs force withdrawals starting at 73 that can push you into higher brackets. Also note the 2026 IRA contribution limit is $7,000 ($8,000 if 50+), and deductibility phases out at higher incomes — this model assumes you qualify for the full deduction.