Roth vs Traditional IRA Calculator
Compare Roth and Traditional IRA options based on your current and expected retirement tax brackets.
2024 limit: $7,000 ($8,000 if 50+)
Roth vs Traditional: Key Differences
Roth IRA: Contribute after-tax dollars, withdrawals in retirement are tax-free. Best if you expect to be in a higher tax bracket in retirement or want tax-free income.
Traditional IRA: Contribute pre-tax dollars (tax deduction now), pay taxes on withdrawals in retirement. Best if you're in a high tax bracket now and expect lower taxes in retirement.
Consider both: Having both Roth and Traditional accounts gives you tax diversification - you can choose which to withdraw from based on your tax situation each year in retirement.
Income limits: Roth IRA has income limits for contributions. Traditional IRA deductibility may be limited if you have a workplace retirement plan.
This calculator provides estimates for educational purposes only.