🏛️ Roth vs. Traditional IRA Calculator
Compare the after-tax retirement value of both account types, based on your own numbers.
How This Comparison Works
Both account types grow your contributions tax-deferred. The difference is when you pay tax:
- Traditional IRA: your contribution may reduce your taxable income today, but every dollar you withdraw in retirement is taxed as ordinary income at your future tax rate.
- Roth IRA: you contribute after-tax money now (no upfront deduction), but qualified withdrawals in retirement — including all growth — are completely tax-free.
This calculator assumes the same dollar amount is contributed each year and applies your entered tax rates directly to the withdrawal (Traditional) or the contribution (Roth, already after-tax by definition). It does not model contribution-limit differences caused by the upfront tax deduction — for a true apples-to-apples comparison, many planners assume you contribute the same nominal dollar amount to either account.
2026 IRA Contribution Limits
For 2026, the IRS combined limit for Traditional and Roth IRA contributions is $7,500. If you are 50 or older, you can add a catch-up contribution, bringing the total to $8,600. This limit applies to your combined contributions across all Traditional and Roth IRAs — you cannot contribute the full limit to each separately.
Frequently Asked Questions
Which one is "better"?
There's no universal answer — it depends on whether your tax rate will be higher or lower in retirement. Many people early in their careers (lower current tax bracket) lean Roth; those in peak earning years often lean Traditional. Some split contributions between both to hedge against future tax-rate uncertainty.
Can I contribute to both in the same year?
Yes, but your combined contribution across both accounts cannot exceed the annual limit shown above.
Does this calculator account for Roth income limits?
No — this tool compares the two account types assuming you're eligible for both. Roth IRA eligibility phases out at higher incomes (see FAQ above); if you're above the limit, a "backdoor Roth" conversion strategy exists but is outside the scope of this general calculator.
Guide: understanding your result
- Traditional IRA: contributions may be deductible now; withdrawals are taxed later. Roth IRA: contributions are taxed now; qualified withdrawals are tax-free.
- The comparison mostly comes down to your tax rate today versus your expected rate in retirement.
- Roth contributions phase out at higher incomes.
Worked example
For 2026 the IRA limit is $7,500 ($8,600 at age 50+). Roth eligibility phases out between $153,000 and $168,000 of modified AGI for single filers and $242,000–$252,000 for joint filers.
If you are in the 22% bracket now and expect 12% in retirement, a deductible traditional contribution saves more tax; if you expect a higher rate later, Roth tends to come out ahead. The calculator above runs the numbers for your own rates.
2026 IRA limits
| Item | Amount |
|---|---|
| Contribution limit | $7,500 |
| Age 50+ limit | $8,600 |
| Roth phase-out (single) | $153,000 – $168,000 |
| Roth phase-out (joint) | $242,000 – $252,000 |
Source: IRS Notice 2025-67.
Common mistakes to avoid
- Assuming traditional IRA contributions are always deductible — deductibility phases out if you are covered by a workplace plan.
- Exceeding the combined limit across traditional and Roth IRAs.
Official sources
Examples are calculated live from the same data the calculator uses and are for education only — they are not financial, tax or investment advice.
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