Roth or traditional? The answer mostly comes down to one question: will your tax rate be higher now or in retirement? This calculator compares the two for the same cost to your take-home pay today, and shows what each account could be worth after taxes when you retire.
Roth vs. Traditional IRA Calculator
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The simple rule
- Expect a higher tax rate later? A Roth usually wins: you pay tax now at the lower rate and withdraw tax-free.
- Expect a lower tax rate later? A traditional account usually wins: you deduct now at the higher rate and pay less tax on withdrawals.
- Not sure? Splitting contributions between both gives you tax flexibility in retirement.
For 2026 you can contribute up to $7,500 to IRAs ($8,600 if you’re 50 or older) and $24,500 to a 401(k), plus catch-up contributions.
Frequently asked questions
Why does the Roth contribution look smaller?
To compare fairly, the calculator uses the same out-of-pocket cost. A $7,500 traditional contribution saves taxes now, so it costs about the same take-home pay as a smaller Roth contribution. If you’re able to contribute the full limit either way, a Roth effectively shelters more money.
Can anyone contribute to a Roth IRA?
No. Roth IRA eligibility phases out at higher incomes, and traditional IRA deductions can be limited if you or your spouse have a workplace retirement plan. Roth 401(k)s have no income limit.
Related: Traditional vs. Roth IRA Guide, 401(k) vs. Roth IRA, RMD Calculator.
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