Compare Roth IRA and Traditional IRA growth and after-tax values
Our Roth IRA vs Traditional IRA calculator compares the after-tax retirement value of both account types. Roth IRAs offer tax-free withdrawals in retirement, while Traditional IRAs provide a tax deduction now but tax withdrawals later.
Choosing between a Roth and Traditional IRA is one of the most important retirement decisions you can make. The right choice depends on your current tax bracket, your expected tax bracket in retirement, and your time horizon until retirement. This calculator makes that comparison clear and actionable.
Use this tool to experiment with different tax rate scenarios. If you expect to be in a higher tax bracket when you retire, a Roth IRA may be the better choice. If you are in a high bracket now and expect lower income in retirement, the Traditional IRA could save you more.
The calculator projects both account balances using the future value of a lump sum plus recurring contributions. Roth contributions are made after tax, so withdrawals are tax-free. Traditional contributions are pre-tax but withdrawals are taxed at retirement.
A Roth IRA is better if you expect to be in a higher tax bracket in retirement, since withdrawals are tax-free. A Traditional IRA is preferable if you are in a high tax bracket now and expect lower taxes later.
Yes, but your total contributions across both accounts cannot exceed the annual IRA contribution limit set by the IRS.
Roth IRA contributions are phased out at higher income levels. For 2025, single filers with a modified AGI above $165,000 and married couples filing jointly above $246,000 cannot contribute the full amount.
Yes, you can withdraw your Roth IRA contributions at any time, tax-free and penalty-free. Earnings withdrawals before age 59.5 may be subject to taxes and penalties unless an exception applies.
The backdoor Roth IRA involves contributing to a Traditional IRA and then converting it to a Roth IRA, allowing high-income earners to bypass Roth IRA income limits. This strategy requires careful tax planning.