Roth vs Traditional Calculator
Pay tax now (Roth) or later (traditional)? Compare what each leaves you after tax.
Estimates only; not tax advice. Uses the flat tax rates you enter and a constant return; doesn't model state rules, credits, AMT or required minimum distributions.
Schedule
About this calculator
Traditional contributions go in before tax and are taxed when you withdraw them; Roth contributions are taxed now and come out tax-free. For the same out-of-pocket cost and the same investments, the Roth ends up ahead if your tax rate in retirement is higher than today's, the traditional account if it is lower, and they tie if the rates are equal.
Worked example
Say you can spare $1,000 of pre-tax pay. In a traditional account all $1,000 is invested; in a Roth, 22% tax leaves $780. If both grow tenfold, the traditional account is worth $10,000 before tax — $8,500 after a 15% tax in retirement — against $7,800 in the Roth. Swap the two tax rates and the Roth wins by the same $700.
Two ways to compare
"Same out-of-pocket cost" compares equal sacrifice from your paycheck: every pre-tax dollar goes into the traditional account, while the Roth gets what is left after today's tax. "Same contribution" fits when you put the same amount in either way — say, the full IRA limit. The traditional saver then also keeps a tax saving each year; the calculator invests it in a taxable account whose returns are taxed every year at today's rate. Because of that drag, the Roth wins at equal tax rates in this mode.
Choosing the tax rates
Use your marginal rate today, federal plus state. For retirement, estimate the rate your traditional withdrawals would face once Social Security, pensions and required minimum distributions are counted — and whether you might move to a state with a lower income tax, or none.
Beyond tax rates
Roth IRAs have no required minimum distributions during the owner's lifetime, and qualified Roth withdrawals don't add to your taxable income in retirement, which can matter for Medicare premiums and the taxation of Social Security benefits. Many people split contributions between both types to spread their future tax risk.
2026 contribution limits
| Account | Limit | Catch-up |
|---|---|---|
| IRA (traditional and Roth combined) | $7,500 | +$1,100 at 50+ |
| 401(k), 403(b), governmental 457, TSP (pre-tax and Roth combined) | $24,500 | +$8,000 at 50+; +$11,250 instead at ages 60–63 |
Source: IRS Notice 2025-67
Sources: IRS Notice 2025-67; IRS news release IR-2025-111.
Estimates only; not tax advice. Uses the flat tax rates you enter and a constant return; doesn't model state rules, credits, AMT or required minimum distributions.
Frequently asked questions
Is a Roth or a traditional account better?
If you expect a higher tax rate in retirement than today, Roth contributions usually leave you with more; if you expect a lower rate, traditional contributions usually do. Early-career savers in low brackets often favor Roth, high earners at their peak often favor traditional. At equal rates, the two come out the same for the same out-of-pocket cost.
What tax rate should I use for retirement?
Estimate your retirement income — Social Security, pensions, required minimum distributions and other withdrawals — and the bracket it would put you in, plus state tax where you expect to live. If you're unsure, try a few rates; the break-even rate shows where the answer flips.
Can I contribute to both a Roth and a traditional account?
Yes. In 2026 the IRA limit of $7,500 ($8,600 at 50+) is shared between traditional and Roth IRAs, and the $24,500 401(k) limit covers both pre-tax and Roth 401(k) deferrals. Splitting is a common hedge against not knowing future tax rates.