Roth vs Traditional IRA/401(k) Calculator

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

By Konstantin Iakovlev · Updated April 2026 · Source: IRS

$
%
%
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

The choice between Roth and Traditional accounts comes down to one question: will your tax rate be higher now or in retirement? To answer it concretely, this tool compares the after-tax value you would actually keep from each path, using projected 2026 tax bracket data so the comparison reflects current law rather than guesswork.

On the Traditional side, the contribution first earns a tax deduction; that up-front savings is subtracted, the balance grows until retirement, and the retirement tax rate is applied to the withdrawal. The Roth side is simpler: you contribute already-taxed dollars, let them compound, and withdraw the full amount tax-free. Whichever path leaves more money in your pocket after taxes is the one the calculator flags as the winner.

One assumption worth questioning is that your current bracket will follow you into retirement, since income often shifts up or down once paychecks stop. State income taxes also deserve attention, as they can take a meaningful bite out of your net withdrawals depending on where you live. Weigh whether you expect to earn more or less later before you commit to either account type.

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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