IRA Calculator: Traditional vs Roth Comparison

Compare Traditional and Roth IRAs, analyze tax implications, and optimize your retirement savings strategy.

IRA Calculator Inputs

Enter your information to compare Traditional and Roth IRAs

Current Age30 years

Retirement Age65 years

Current Annual Income

Expected Retirement Income

Current Tax Rate22%

Expected Retirement Tax Rate15%

Annual Contribution

Limit to maximum allowed contribution ($7,000/year)

Include catch-up contributions after age 50 (+$1,000/year)

Contribution Frequency

Expected Annual Return7%

Inflation Rate2.5%

Account for inflation in calculations

IRA Comparison Results

Compare Traditional and Roth IRA outcomes based on your inputs

Account Balance at Retirement (Age 65)

Traditional IRA

Before taxes

After-Tax Value:$0

Tax Savings Now:$0

Roth IRA

Tax-free withdrawals

After-Tax Value:$0

Tax Paid Now:$0

Recommendation

Traditional IRA: Contributions are tax-deductible now, but withdrawals are taxed in retirement.

Roth IRA: Contributions are taxed now, but qualified withdrawals are tax-free in retirement.

Key Consideration: If you expect your tax rate to be higher in retirement, a Roth IRA may be more beneficial.

IRA Comparison

Account Growth Over Time

Detailed Yearly Breakdown

Age	Year	Traditional Balance	Roth Balance

Important Considerations

Income Limits: Roth IRA contributions are subject to income limits. For 2024, the ability to contribute begins to phase out at $138,000 for single filers and $218,000 for married filing jointly.

Required Minimum Distributions (RMDs): Traditional IRAs require withdrawals starting at age 73. Roth IRAs have no RMDs during the owner's lifetime.

Early Withdrawals: Both accounts may incur a 10% penalty for withdrawals before age 59½, with some exceptions. Roth IRAs allow penalty-free withdrawal of contributions (but not earnings) at any time.

Tax Diversification: Consider having both types of accounts to provide tax flexibility in retirement.

Traditional IRA Features

Tax Treatment

Contributions may be tax-deductible
Earnings grow tax-deferred
Withdrawals in retirement are taxed as ordinary income

Contribution Limits (2024)

Under age 50: $7,000
Age 50 and older: $8,000

Required Minimum Distributions

Must begin taking RMDs at age 73
RMD amount based on life expectancy and account balance
50% penalty on RMD amounts not taken

Early Withdrawals

10% penalty for withdrawals before age 59½
Exceptions for first-time home purchase, education, etc.
All withdrawals subject to income tax

Best For

Those who expect to be in a lower tax bracket in retirement
Those who want to reduce current taxable income
Those who don't qualify for Roth IRA contributions due to income limits
Those who can benefit from the current tax deduction