Roth vs Traditional IRA Calculator
See whether a Roth or Traditional IRA gives you more after-tax retirement income for the same pre-tax sacrifice. The calculator runs a fair comparison: same pre-tax dollars allocated, with Traditional getting the full amount invested and Roth investing the after-tax remainder. The math depends mostly on whether you expect a higher or lower tax bracket in retirement.
How is this calculated?
Both accounts grow tax-free; the difference is timing of taxation. Traditional: contribute pre-tax → invest full amount → withdraw and pay tax at retirement bracket. Roth: pay current-year tax → invest the after-tax remainder → withdraw tax-free. With equal current and retirement brackets, the after-tax outcome is identical. If your retirement bracket will be higher, Roth wins (today’s tax is cheaper than tomorrow’s). If your retirement bracket will be lower, Traditional wins. The 2025 contribution limit is $7,000 ($8,000 if 50+); Roth has income phaseouts ($150-165k single, $236-246k MFJ).
Frequently Asked Questions
Which should I choose?
If you're early-career and expect higher income in retirement → Roth. If you're peak-earning and expect lower spending in retirement → Traditional. If unsure, splitting between both hedges your bet. Many people 'tax-diversify' by holding some of each.
What if my income is too high for a Roth?
The 'backdoor Roth' strategy: contribute to a Traditional IRA (no income limit on contributions, just on tax deduction), then convert to Roth (no income limit on conversions). Watch out for the pro-rata rule if you have other Traditional IRA balances.
Can I have both an IRA and a 401(k)?
Yes — totally separate IRS limits. You can contribute the max to your 401(k) ($23,500 for 2025) AND the max to an IRA ($7,000). Total of $30,500 + catch-up if 50+. Limits apply across all your IRAs combined (Roth + Traditional), not separately.
What about Required Minimum Distributions?
Traditional IRA: RMDs start at age 73 (rising to 75 by 2033). You must withdraw a minimum each year based on IRS life-expectancy tables. Roth IRA: NO required distributions for the original owner — your money can keep growing tax-free for life. Inherited Roth IRAs do have RMDs.
Last updated: May 2026 · Rates sourced from IRS