Roth vs traditional
Roth vs Traditional Calculator
Compare Roth and traditional IRA or 401(k) contributions based on your tax rate today versus in retirement.
2026 limits: IRA $7,500, 401(k) $24,500.
Federal + state marginal rate today.
Traditional: after tax at withdrawal
$50,241
Roth: tax-free at withdrawal
$44,532
Traditional wins by
$5,709
The rule of thumb: if you expect a higher tax rate later, Roth usually wins; if you expect a lower one, Traditional usually wins. With equal rates they come out the same. Shown for one year's contribution of $7,500 of pre-tax income.
Simplified: assumes the same pre-tax budget for both and flat tax rates. Roth IRA eligibility phases out at higher incomes, required minimum distributions apply to Traditional accounts, and many people split contributions between both to hedge. Not tax advice.
Sources · figures checked 2026-09-24
