Roth vs Traditional IRA Calculator
Compare Roth IRA and Traditional IRA side by side. Enter your annual contribution, investment timeline, expected returns, and tax rates to see which account type produces a better after-tax outcome for your retirement.
Roth vs Traditional IRA Calculator
FAQ
What is the difference between Roth and Traditional IRA?
With a Traditional IRA, contributions are tax-deductible now but withdrawals are taxed in retirement. With a Roth IRA, you contribute after-tax dollars but withdrawals in retirement are completely tax-free.
When is a Roth IRA better?
A Roth IRA is generally better if you expect your tax rate in retirement to be higher than your current rate. It is also advantageous for younger investors who are currently in a lower tax bracket and expect income growth.
Can I have both a Roth and Traditional IRA?
Yes, you can contribute to both types, but your total combined contributions cannot exceed the annual IRA limit ($7,000 in 2024, or $8,000 if you are 50 or older). Many people use both for tax diversification in retirement.