Roth IRA vs Traditional IRA Calculator
Compare Roth IRA and Traditional IRA retirement accounts. Calculate tax-free growth, contribution limits, and see which IRA type saves you more money based on your current and future tax rates.
Your Information
$85,000
$10,000
$6,500 / year
2024 limit: $7,000
8% per year
Tax Rates
24% tax bracket
Your marginal tax rate while contributing
22% tax bracket
Expected tax rate during withdrawals
Tax Strategy Insight
Traditional IRA may be better - save taxes now at higher rate
After-Tax Balance at 65
$1,267,913
Contributed
$237,500
Earnings
$1,030,413
Taxes Paid
$54,600
Roth vs Traditional Comparison
Roth IRA Advantage
After-tax difference
$278,941
Balance Growth Over Time
Key Differences
Roth IRA Benefits
- • Tax-free withdrawals in retirement
- • Tax-free earnings growth
- • No required minimum distributions
- • Withdraw contributions anytime
- • Better if taxes rise in future
Traditional IRA Benefits
- • Immediate tax deduction
- • Lower taxable income now
- • Tax-deferred growth
- • Better if in high tax bracket now
- • No income limits
Recommendation
Based on your tax rates, a Roth IRA appears better. You'll save $278,941 in taxes over your lifetime by paying taxes now at 24% rather than 22% later.
Maximize Your Savings
You're contributing $6,500 per year. Consider increasing to the maximum of $7,000 to accelerate your retirement savings!
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