Roth vs Traditional IRA Calculator
The right account depends on your tax rate now vs. in retirement. Find out which one wins for you.
Your Situation
2026 limit: $7,000 / $8,000 if 50+
Account Growth Comparison
| Age | Roth Balance | Trad. Balance | Trad. After-Tax |
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Tax strategy is where a financial advisor adds the most value. Get a second opinion on your IRA approach.
Find a Fee-Only Tax-Aware Advisor →Roth vs Traditional IRA: The Key Difference
The decision comes down to one question: will your tax rate be higher now, or in retirement? With a Roth IRA, you pay taxes on your contributions today (no deduction) but all growth and withdrawals in retirement are completely tax-free. With a Traditional IRA, you get a tax deduction today, but all withdrawals in retirement are taxed as ordinary income.
If your tax rate in retirement will be lower than today (common for high earners who will have lower income in retirement), Traditional wins, you deducted at the higher rate and pay at the lower rate. If your tax rate will be higher in retirement (common for young workers in low brackets now who expect higher income later), Roth wins.
There is also a strategic consideration beyond pure math: Roth accounts have no Required Minimum Distributions (RMDs), giving you more control over when and how much to withdraw. This makes Roth accounts valuable for estate planning and for managing taxable income in retirement, independent of the straight rate comparison.