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IRA Calculator

Use this calculator to compare Traditional and Roth IRA options, estimate your potential retirement savings growth, and understand the tax implications of different IRA contribution strategies.

IRA Calculator

Compare Traditional and Roth IRA options to determine which is better for your retirement planning.

IRA Calculator: Traditional vs. Roth

Your Information

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Financial Information

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Tax Information

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Investment Assumptions

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Traditional vs. Roth IRA Comparison

Traditional IRA Balance at Withdrawal
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Traditional IRA After-Tax Value
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Roth IRA Balance at Withdrawal
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$0.00
Difference
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$0.00
Tax Savings If Invested
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Traditional IRA Annual Income
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Roth IRA Annual Income
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Results update automatically as you change your inputs

About Traditional vs. Roth IRAs

Traditional and Roth IRAs are tax-advantaged retirement accounts with key differences in how they're taxed:

  • Traditional IRA: Contributions may be tax-deductible now, growth is tax-deferred, and withdrawals are taxed in retirement.
  • Roth IRA: Contributions are made with after-tax dollars, growth is tax-free, and qualified withdrawals are tax-free in retirement.

The decision between Traditional and Roth often comes down to whether you expect your tax rate to be higher or lower in retirement than it is now:

  • Choose Traditional if you expect to be in a lower tax bracket in retirement
  • Choose Roth if you expect to be in a higher tax bracket in retirement

This calculator provides estimates based on your inputs. Other factors like required minimum distributions, estate planning, and future tax law changes should also be considered when making your decision.

How to Use This Calculator

This calculator helps you make informed financial decisions by providing accurate estimates based on the information you provide. Follow these steps:

1

Enter Your Details

Fill in all required fields with your financial information.

2

Adjust Parameters

Use sliders and toggles to customize scenarios and assumptions.

3

View Results

Get instant calculations that update as you change inputs.

4

Compare Options

Try different scenarios to find the best financial solution.

Traditional vs. Roth IRA

Individual Retirement Accounts (IRAs) are tax-advantaged accounts designed to help you save for retirement. Understanding the differences between Traditional and Roth IRAs can help you make the best choice for your financial situation.

Traditional IRA

  • Tax Treatment: Contributions may be tax-deductible, reducing your current taxable income.
  • Growth: Investment earnings grow tax-deferred.
  • Withdrawals: Distributions in retirement are taxed as ordinary income.
  • Required Minimum Distributions (RMDs): Must begin taking distributions at age 72.
  • Income Limits: No income limits for contributing, but deductibility may be limited if you have a workplace retirement plan.

Roth IRA

  • Tax Treatment: Contributions are made with after-tax dollars (no immediate tax deduction).
  • Growth: Investment earnings grow tax-free.
  • Withdrawals: Qualified distributions in retirement are completely tax-free.
  • Required Minimum Distributions: No RMDs during the original owner's lifetime.
  • Income Limits: There are income limits for Roth IRA eligibility.

Which IRA Is Right for You?

Consider a Traditional IRA if:

  • You expect to be in a lower tax bracket in retirement.
  • You want to reduce your current taxable income.
  • You are eligible for the tax deduction.

Consider a Roth IRA if:

  • You expect to be in a higher tax bracket in retirement.
  • You want tax-free withdrawals in retirement.
  • You want to avoid RMDs during your lifetime.
  • You want flexibility with withdrawals of contributions (which can be taken out anytime, tax and penalty-free).