Roth vs. Traditional IRA Calculator

Because of the math: a Traditional account invests the full pre-tax dollar and taxes it later; a Roth pays the tax first and invests what's left, tax-free later. Multiplying by (1 − tax rate) either before or after compounding gives the same result if the rate doesn't change.

Roth wins if you expect to be in a higher tax bracket in retirement than you are now (common for younger savers early in their careers). Traditional wins if you expect a lower bracket in retirement (common for high earners nearing retirement).

This is the reduction in this year's tax bill from a Traditional contribution — money you keep in your pocket today rather than investing, shown separately since our main comparison already accounts for it by only investing the after-tax equivalent in the Roth scenario.

Yes — Roth IRAs have no required minimum distributions during your lifetime, income limits restrict who can contribute directly, and early withdrawal rules differ between the two. This calculator focuses only on the tax-rate math.