Roth vs Traditional IRA Calculator — Which Is Better For You?

Your Situation

Annual Contribution (2024 max: $7,000, $8,000 if 50+)

$

Years Until Retirement

years

Your Current Tax Rate (marginal bracket now)

%

Expected Retirement Tax Rate (marginal bracket in retirement)

%

Expected Annual Return

%

State Tax Rate (for Roth after-tax calculation)

%

At Retirement

Roth IRA

—

after-tax at retirement

Traditional IRA

—

after-tax at retirement

Factor	Roth	Traditional

The Quick Rule

Choose Roth if you expect your tax rate to be higher in retirement than now (common for younger/lower-income earners). Pay tax now at a lower rate, withdraw tax-free later.

Choose Traditional if you expect your tax rate to be lower in retirement than now (common for peak earners). Defer taxes now, pay a lower rate at withdrawal.

If your rates are the same, the math is identical — but Roth wins on flexibility: no required minimum distributions, contributions can be withdrawn anytime penalty-free, and it hedges against future tax hikes.