USA: Retirement & savings
Roth vs Traditional IRA
Decide between paying tax now (Roth) or later (Traditional). Enter how much you will contribute each year, how long it will grow and your tax rates today and in retirement. The calculator compares the after-tax value of each, including investing the tax you save with a Traditional account.
How to use the Roth vs Traditional IRA
- Enter your yearly contribution and years to retirement.
- Enter the expected investment return.
- Enter your tax rate now.
- Enter the tax rate you expect in retirement.
Formula
Example
Saving $7,500 a year for 30 years at 7%: if your rate falls from 22% now to 15% later, Traditional tends to come out slightly ahead; if it rises, Roth wins.
Quick guide
- Early career, lower income now → Roth often wins
- Peak earning years, high bracket now → Traditional often wins
- Unsure → split between both for tax diversification
2026 IRA rules
You can contribute up to $7,500 ($8,600 at age 50+) across all IRAs. Roth IRA contributions phase out at $153,000-$168,000 of income for single filers and $242,000-$252,000 for married couples filing jointly.
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Frequently asked questions
Can I have both?
Yes, but the $7,500 limit is shared between them.
Can I take Roth contributions out early?
Your contributions (not earnings) can be withdrawn any time without tax or penalty.
Do Roth IRAs have required minimum distributions?
No, not during the original owner's lifetime.
What is a backdoor Roth?
High earners contribute to a Traditional IRA and convert it to Roth. Speak to a tax professional first.
Results are estimates for planning, not financial advice. Confirm important decisions with a qualified professional. Your inputs stay in your browser and are not sent to Soft2Cloud.
Last updated: November 2026