Roth vs Traditional IRA Calculator: Which Saves You More
Published 06/09/2026 by
Ante Mazalin
Summary:
A Roth vs traditional IRA calculator shows which account leaves you with more money after taxes, based on whether your tax rate is higher now or in retirement. The choice comes down to a single comparison, and three factors decide it.
- Tax rate now: A traditional IRA deducts contributions at your current rate, lowering this year’s tax bill.
- Tax rate in retirement: A Roth is taxed now and withdrawn tax-free, so it wins if your future rate is higher.
- When the two tie: At equal tax rates now and later, both accounts produce the exact same after-tax result.
The Roth versus traditional debate sounds complicated, but underneath it is one question: will your tax rate be higher now or when you retire? Everything else is detail.
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How the two accounts differ
A traditional IRA gives you a tax deduction the year you contribute, then taxes every dollar you withdraw in retirement as ordinary income. You get the break now and pay later.
A Roth IRA is the mirror image. You contribute money you have already paid taxes on, and qualified withdrawals in retirement are completely tax-free. You pay now and get the break later.
The math: which leaves you with more
The fair comparison holds your out-of-pocket cost equal. Because a traditional IRA’s deduction frees up cash, $7,500 of take-home pay buys a $9,615 traditional contribution but only a $7,500 Roth one.
Both grow at 7% for 30 years, so the retirement tax rate alone decides the winner.
| Tax rate in retirement | Roth IRA (after tax) | Traditional IRA (after tax) | Winner |
|---|---|---|---|
| Lower (12%) | $758,048 | $855,233 | Traditional, by $97,186 |
| Same (22%) | $758,048 | $758,048 | Exact tie |
| Higher (32%) | $758,048 | $660,862 | Roth, by $97,186 |
The middle row is the key insight: when your tax rate is the same now and in retirement, the two accounts produce identical after-tax money. The deduction and the tax-free withdrawal exactly cancel out.
So the decision is purely a bet on tax rates. Expect a higher rate later, choose Roth. Expect a lower rate later, choose traditional.
How to choose between Roth and traditional
Four questions settle it for most people.
- Compare your tax bracket today to where you expect it in retirement. Higher later favors Roth; lower later favors traditional.
- Check your income against the Roth limits. Above the phase-out, a direct Roth contribution is off the table and traditional (or a backdoor Roth) is the route.
- Weigh certainty. Roth removes future tax-rate risk entirely, which has value if you expect rates to rise.
- Consider required withdrawals. Traditional IRAs force distributions starting at age 73; Roth IRAs never do during your lifetime.
Side-by-side comparison
| Roth IRA | Traditional IRA | |
|---|---|---|
| Tax break | Withdrawals tax-free in retirement | Contributions deductible now |
| Taxes in retirement | None on qualified withdrawals | Ordinary income tax on every dollar |
| 2026 contribution limit | $7,500 ($8,600 if 50+) | $7,500 ($8,600 if 50+) |
| Income limits to contribute | Yes, phase-outs apply | None to contribute; deduction may phase out |
| Required withdrawals | None during your lifetime | Begin at age 73 |
| Early access to contributions | Anytime, tax and penalty-free | Taxed plus 10% penalty before 59½ |
The combined limit matters: $7,500 is the total across both accounts in 2026, not per account. You can split a contribution between them, but the ceiling is shared.
Pro Tip: Early-career savers usually win with Roth because their current tax rate is low and has room to rise. Peak earners near the end of their careers often win with traditional, taking the deduction at a high rate now and withdrawing at a lower one later. Splitting contributions hedges the bet when you genuinely cannot tell.
The 2026 contribution and income limits
Both accounts share the same contribution ceiling: $7,500 in 2026, or $8,600 if you are 50 or older.
Roth eligibility phases out by income: $153,000 to $168,000 for single filers and $242,000 to $252,000 for married couples filing jointly. Above those ranges, a direct Roth contribution is not allowed.
Traditional IRA contributions have no income limit, though the deduction can phase out if you or a spouse is covered by a workplace plan.
When each account wins
Roth fits savers who expect higher taxes later, want tax-free income in retirement, value never being forced to withdraw, or may need to tap contributions before 59½.
Traditional fits savers who want to cut this year’s tax bill, expect a lower rate in retirement, or earn too much for a direct Roth and prefer the deduction.
Key takeaways
- The Roth vs traditional choice is a bet on your tax rate now versus in retirement.
- At equal tax rates, the two accounts produce identical after-tax money. The deduction and tax-free withdrawal cancel out.
- Roth wins if your retirement rate is higher; traditional wins if it is lower. The gap can run six figures over 30 years.
- The $7,500 limit (or $8,600 at 50+) is shared across both accounts in 2026, not per account.
- Roth contributions can be withdrawn anytime; traditional withdrawals are taxed and penalized before 59½ and required after 73.
FAQ
Is a Roth or traditional IRA better?
Neither is universally better. Roth wins if your tax rate is higher in retirement than today; traditional wins if it is lower. At equal rates, they produce the same after-tax result.
Can I contribute to both a Roth and a traditional IRA?
Yes, but the combined contributions cannot exceed the annual limit: $7,500 in 2026, or $8,600 if you are 50 or older. Splitting between the two is a common way to hedge tax-rate uncertainty.
What if I earn too much for a Roth IRA?
Above the income phase-out ($168,000 single, $252,000 married filing jointly in 2026), you cannot contribute directly to a Roth. You can still fund a traditional IRA, or use a backdoor Roth by contributing to a traditional IRA and converting it.
Which is better for young investors?
Usually Roth. Early-career earners tend to be in a low tax bracket with decades of tax-free growth ahead, and paying tax now at a low rate beats paying it later at a likely higher one.
Do both accounts have required minimum distributions?
Only traditional IRAs. They require withdrawals beginning at age 73. Roth IRAs have no required distributions during the original owner’s lifetime, which makes them useful for estate planning.
Can I switch from traditional to Roth later?
Yes, through a Roth conversion, but you owe income tax on the converted amount in the year you convert. Whether that pays off depends on your current versus future rate and how you cover the tax bill.
The right call depends on where your income is headed, which is rarely obvious in the moment. Sense AI, the AI assistant in the SuperMoney app, can talk through the tax-rate bet using your actual income and savings picture.
Once you have picked an account, the next question is how much it grows. The Roth IRA calculator projects your balance by contribution and age so you can see the tax-free total taking shape.
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