Roth vs Traditional IRA/401(k) Calculator

Compare Roth vs Traditional contributions. See which wins based on current vs retirement tax brackets.
$
%
%
yrs
%

Roth (tax-free)

$507,573.53

Traditional (after tax)

$395,907.35

Winner

Roth IRA

Comparison

Roth Final Balance$507,573.53
Tax on Roth Withdrawals$0.00
Roth Net Value$507,573.53
Traditional Final Balance$507,573.53
Tax on Traditional Withdrawals$111,666.18
Traditional Net Value$395,907.35
Annual Tax Savings (Traditional)$1,800.00
Break-Even Retirement Rate24.00%

Use the Roth vs Traditional IRA/401(k) Calculator above to calculate your results. Enter your values and see instant results — all calculations run in your browser.

Disclaimer: This calculator is for informational purposes only and does not constitute tax, financial, or legal advice. Results are estimates based on the information you provide and current rates. Always consult a qualified tax professional or financial advisor for advice specific to your situation.

How It Works

Deciding between a Roth and Traditional IRA or 401(k) can save you thousands. This calculator helps you compare the after-tax value of your contributions, anticipating future tax rates. We'll use projected 2026 tax bracket data to give you a clearer picture of your retirement savings.

The calculator determines the after-tax value of a Traditional contribution by subtracting the tax savings from the initial contribution, then calculating the future value at retirement and applying the retirement tax rate. For Roth, the initial contribution is invested, grows, and is withdrawn tax-free. The higher after-tax value determines the 'winner'.

A common mistake is assuming your current tax bracket will remain the same throughout retirement. Also, don't forget to factor in potential state income taxes, which can significantly impact your net withdrawals. Consider if you anticipate a higher or lower income in retirement when choosing.

Example: Roth vs. Traditional for a $10,000 Contribution

  1. 1 Input: Current income $70,000 (22% tax bracket in 2026 for single filers), Retirement income $50,000 (12% tax bracket in 2026), Contribution $10,000, Years to retirement 30, Annual return 7%.
  2. 2 Calculation: Traditional: $10,000 contribution, $2,200 immediate tax savings. Net contribution of $7,800 grows to ~$59,335. After 12% retirement tax: ~$52,215. Roth: $10,000 contribution (after-tax), grows to ~$76,123. No retirement tax: ~$76,123.
  3. 3 Result: In this scenario, the Roth account wins by approximately $23,908 after taxes, assuming a lower retirement tax bracket.
  4. 4 Context: This example demonstrates that if you expect to be in a lower tax bracket during retirement than you are currently, a Roth account can be more advantageous due to its tax-free withdrawals.

Source: IRS · Last updated: April 2026

Frequently Asked Questions

Should I choose Roth or Traditional 401(k)?
Choose Roth if you expect your tax rate to be higher in retirement (younger workers, lower current income, or expecting significant income growth). Choose Traditional if your current tax rate is higher than your expected retirement rate. When in doubt, splitting contributions between both provides tax diversification.
What is the income limit for Roth IRA in 2026?
In 2026, Roth IRA contributions phase out at MAGI of $160,000-$175,000 for single filers and $240,000-$250,000 for married filing jointly. Above these limits, you cannot contribute directly but can use the backdoor Roth strategy.
Can I have both a Roth and Traditional IRA?
Yes, but the combined contribution limit is $7,000 ($8,000 if age 50+) across all IRAs in 2026. You can split contributions however you like. The 401(k) limit ($24,500 in 2026) is separate and in addition to IRA limits.

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