Roth vs Traditional IRA Calculator

Compare after-tax retirement balance for Roth IRA vs Traditional IRA based on your tax brackets now and in retirement.

Current Age

years

Retirement Age

years

Annual Contribution

Current Tax Bracket

Expected Retirement Tax Bracket

Expected Annual Return

Recommendation: Roth IRA

$1,036,776.59

Years Until Retirement35 years

Total Contributions$262,500.00

Roth IRA: Tax-Free Balance$1,036,776.59

Traditional IRA: After-Tax Balance$808,685.74

Traditional + Tax Savings (taxable)$1,030,141.22

Difference$6,635.37 better with Roth IRA

Tax Rate Now → Retirement24% → 22%

Over 35 years contributing $7,500.00/year at 7.0% return: Roth gives $1,036,776.59 tax-free; Traditional gives $808,685.74 after retirement tax. Roth IRA wins by ~$6,635.37 given your tax-bracket assumptions.

假设分析

Current Age$1,036,776.59

Retirement Age$1,036,776.59

Annual Contribution$1,036,776.59

Current Tax Bracket$1,036,776.59

Expected Retirement Tax Bracket$1,036,776.59

Expected Annual Return$1,036,776.59

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关于此计算器

The Roth vs Traditional IRA decision hinges on one question: will your tax bracket be higher now or in retirement? A Traditional IRA gives you a tax deduction today but you pay income tax on every withdrawal. A Roth IRA uses after-tax dollars now but withdrawals — including all growth — are tax-free in retirement. This calculator computes the net after-tax balance for each so you can see which one wins for your specific situation. The 2026 IRA contribution limit is $7,500 ($8,500 if 50+).

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常见问题

When is Roth IRA better than Traditional?

When you expect your retirement tax bracket to be the same or higher than today. This applies to: (1) young workers early in their career, (2) anyone expecting future tax rates to rise, (3) high earners who want tax diversification, and (4) people who plan to leave their IRA to heirs (Roth is more inheritance-friendly).

Can I contribute to both Roth and Traditional?

Yes, but the combined limit is $7,500 in 2026 ($8,500 if 50+). Many planners suggest splitting contributions across both — this hedges against future tax-rate uncertainty. You can only fully deduct Traditional contributions if you (or your spouse) don't have a workplace retirement plan, or your income is below certain limits.

What are the 2026 income limits for Roth IRA?

Single filers: full Roth contribution allowed if MAGI < $150K, phased out fully above $165K. Married filing jointly: full contribution if MAGI < $236K, phased out fully above $246K. Above these, consider a Backdoor Roth IRA conversion strategy.

What is a Backdoor Roth?

A workaround for high earners above the Roth income limit: contribute to a non-deductible Traditional IRA, then convert it to a Roth IRA. The conversion itself isn't income-limited. Beware of the pro-rata rule if you have other pre-tax IRA money — it can trigger unexpected tax on conversion.

Can I withdraw early without penalty?

Roth: contributions (but not growth) can be withdrawn at any time tax-free, penalty-free. Traditional: withdrawals before 59½ usually trigger income tax + 10% penalty, with exceptions for first home purchase ($10K), education, medical bills, and disability. After 59½, both are penalty-free; Traditional is still taxable.

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For informational purposes only. Calculator results are estimates based on the inputs you provide. This is not financial, investment, tax, or legal advice. Consult a qualified financial professional before making major financial decisions.