Traditional gives you a tax break now. Roth gives you tax free withdrawals later. Which wins depends entirely on your tax rate today versus your tax rate in retirement.
This tool starts from the amount of after tax money you can realistically set aside each year, since that is the true cost you feel in your paycheck either way. For a Traditional IRA, that same after tax amount lets you contribute more, because the contribution is tax deductible: the calculator grosses up your contribution to reflect the tax savings from that deduction. For a Roth IRA, your contribution is simply the after tax amount itself, since Roth contributions get no upfront deduction. Every slider on this page has a matching number field: drag to explore, or type exact figures if you already know your numbers.
When you contribute the same real, after tax cost to each account type, Traditional and Roth produce exactly the same after tax value at retirement if your tax rate never changes. This calculator is built specifically to demonstrate that identity. If you expect to be in a lower tax bracket in retirement than you are today, the Traditional deduction is worth more than the tax you will eventually pay, so Traditional wins. If you expect to be in a higher bracket later, paying tax now at today's lower rate and enjoying tax free growth with Roth wins instead.
Nobody knows their exact tax bracket decades from now with certainty. It depends on future tax law, which changes regularly, your total retirement income from Social Security, pensions, and other accounts, and where tax brackets happen to sit by then. Many financial planners suggest holding a mix of both account types specifically to hedge against this uncertainty, giving you flexibility to control your taxable income in retirement by choosing which account to withdraw from each year.
For 2026, the IRS caps IRA contributions at $7,500 a year, or $8,600 if you are 50 or older, and that limit is combined across all your Traditional and Roth IRAs together, not a separate cap for each account type. The amount you can set aside on this calculator is capped at that limit directly. Because this tool grosses up the Traditional contribution to reflect the tax deduction, that grossed up figure can still exceed the real limit at higher tax rates even when your input is already capped. When that happens, the Traditional contribution itself is capped at the real limit, and any extra cash your deduction freed up beyond what the IRA needs is treated as invested separately, so your current tax rate still fully shows up in the comparison even once the IRA contribution itself is maxed out. For 401k style employer plans, which have a much higher elective deferral limit, this constraint is far less likely to bind.
Roth versus Traditional account selection, tax diversification, and the underlying present value logic are core retirement planning content on the CFP exam and appear throughout retirement account questions on the Series 65 and Series 66. Our Marginal vs. Effective Tax Rate Calculator can help you pin down your actual current bracket for this comparison.
Yes. Roth IRA eligibility phases out above certain income levels, while Traditional IRA contributions are always allowed, though the tax deduction itself can phase out if you or a spouse are covered by a workplace retirement plan. This calculator does not check eligibility and assumes you qualify to contribute to either account type.
No. The IRS contribution limit applies to the combined total across all your Traditional and Roth IRAs together, not separately to each. For 2026, that combined limit is $7,500, or $8,600 if you are 50 or older. You can split that limit between the two account types however you like, but you cannot exceed it in total.
Traditional IRAs are subject to required minimum distributions starting at age 73 or 75 depending on your birth year. Roth IRAs have no required minimum distributions during the original owner's lifetime, which is a meaningful advantage for money you do not need to spend. Our RMD Calculator can help you estimate that requirement for a Traditional account.
Many planners recommend splitting contributions between both account types to hedge that uncertainty, or leaning Roth earlier in your career when your current rate is likely lower than it will be later, and leaning Traditional in higher earning years. The breakeven rate this calculator shows is the exact number to compare against your best guess for retirement.
Yes. Each slider has a paired number input. Type directly into any gold field to enter a precise figure, and the slider along with all results update immediately.
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