Roth vs Traditional Calculator

Roth means pay tax now and withdraw tax free later. Traditional means deduct now and pay tax later. The better choice mostly depends on whether your tax rate will be higher or lower in retirement.

Enter your numbers

Take-home pay you set aside each year$The same cost to you either way.Years until withdrawalyearsExpected return%/yrTax rate today%Your federal + state bracket.Tax rate in retirement%

Better choice with these numbersTraditionalfor one year's contribution

Roth: after-tax value later: $33,794
Traditional: after-tax value later: $36,827
Traditional contribution (same take-home cost): $8,974

The rule of thumb: if you expect a lower tax rate in retirement, traditional usually wins; if higher, Roth usually wins. Roth accounts also have no required withdrawals during your lifetime, and many people split savings between both to keep options open.

Estimates only, not financial, tax, or investment advice.

A fair comparison

The calculator compares the same take-home cost. Because a traditional contribution is tax-deductible, the same paycheck cost lets you put in more—then you pay tax on everything when you withdraw.

Other differences

Roth IRAs have no required minimum distributions for the owner.
Roth contributions (not earnings) can be withdrawn from a Roth IRA at any time.
Traditional withdrawals add to taxable income, which can affect how much of your Social Security is taxed and your Medicare premiums.

Common questions

Is Roth or traditional better?

Roth tends to win if your tax rate will be higher in retirement; traditional tends to win if it will be lower. If you are unsure, splitting between both gives you flexibility.

Do Roth accounts have required minimum distributions?

Roth IRAs and Roth accounts in workplace plans have no RMDs during the owner’s lifetime.

Official 2026 figures from: IRS: 2026 401(k) and IRA limits (IR-2025-111) · IRS: Catch-up contributions · IRS: Required minimum distributions · IRS: Publication 590-B (Uniform Lifetime Table) · IRS: Rev. Proc. 2025-19 (2026 HSA limits) · SSA: 2026 COLA fact sheet · CMS: 2026 Medicare premiums and deductibles · SSA: Cost-of-living adjustment history · BEA: Regional Price Parities by state (2024 data)