Roth vs Traditional IRA Calculator 2026 — Which Wins?

🔵 Roth IRA ROTH

after-tax at retirement

🟣 Traditional IRA TRAD

after-tax at retirement

Your Situation

Current Age

Retirement Age

Current Tax Bracket

Retirement Tax Bracket

Annual Contribution

Annual Return

investment return7.0%

4%14%

🎉

Roth IRA Wins

—

more after-tax money in retirement

🔵 Roth IRA ROTH

—

after-tax at retirement

Gross balance—

Tax on withdrawal$0

Total contributed—

Growth multiple—

🟣 Traditional IRA TRAD

—

after-tax at retirement

Gross balance—

Tax on withdrawal—

Total contributed—

Growth multiple—

🔵 Roth Growth

🟣 Traditional Growth

Year-by-Year Comparison ▼

Age	Roth Balance	Trad Balance	Roth After-Tax	Trad After-Tax

After-tax comparison: Roth withdrawals tax-free; Traditional withdrawals taxed at retirement rate. Roth: after-tax contributions so we add back the tax cost for fair comparison. Projections assume constant returns. Not financial advice.

Roth vs Traditional IRA — Which Is Right for You?

Both IRAs grow tax-deferred. The difference is when you pay tax. Roth: pay tax now, withdraw tax-free. Traditional: deduct now, pay tax in retirement. The winner depends on your current vs future tax bracket.

When Roth IRA Wins

Your current tax bracket is lower than your expected retirement bracket
You want flexibility — contributions can be withdrawn any time, no RMDs
You expect the account to grow very large — all future growth is tax-free forever
You want to leave money to heirs tax-free (no RMDs = more compounding time)

When Traditional IRA Wins

Your current tax bracket is higher than your expected retirement bracket
You need the tax deduction now to reduce this year's taxable income
You won't have other significant income sources in retirement

Are Roth and Traditional IRA contributions the same limit?+

Yes. The $7,000 (or $8,000 age 50+) limit is combined across all IRAs. You can split contributions: $3,500 to Roth and $3,500 to Traditional, but your total cannot exceed $7,000. The 401k limit is separate.

Can I convert a Traditional IRA to Roth?+

Yes — a Roth conversion. You move money from Traditional to Roth and pay income tax on the converted amount in that year. This is the basis of the backdoor Roth strategy. If you expect higher future taxes, converting during low-income years (early retirement, sabbatical, market downturn) is a powerful strategy.

What if tax rates change in the future?+

This is the real uncertainty. If Congress raises tax rates, Roth wins even if you're in the same bracket. If rates fall, Traditional wins. Because of this uncertainty, many advisors suggest splitting contributions — some Roth, some Traditional — to hedge against future rate changes. Called "tax diversification."

📌 Comparison Summary

Roth after-tax—

Traditional after-tax—

Advantage—

Winner—

Years investing—

📌 Quick Decision Guide

Lower bracket now→ Roth

Higher bracket now→ Traditional

Same bracket→ Roth (flexibility)

Long time horizon→ Roth

Near retirement→ Traditional