IRA
Compare Traditional vs Roth IRA retirement accounts
Calculators on this site provide estimates for general informational purposes only. They are not financial, investment, tax, or legal advice. Consult a qualified professional before making any decision.
How to use IRA
- 1Select whether you want to compare Traditional IRA, Roth IRA, or both.
- 2Enter your current age, planned retirement age, annual contribution, and expected rate of return.
- 3Review the estimated after-tax balance and compare which account may leave you with more spendable money.
Traditional IRA vs Roth IRA
Future value = contribution × (((1 + r)^n - 1) / r) × (1 - tax_rate_or_0)A Traditional IRA gives you a tax deduction today, but withdrawals in retirement are taxed as ordinary income.
A Roth IRA uses after-tax dollars, so qualified withdrawals in retirement are usually tax-free.
The better choice depends on whether your current tax rate is higher or lower than the rate you expect in retirement.
Frequently asked questions
Can I contribute to both a Traditional and Roth IRA?
Yes, but your combined annual contribution cannot exceed the IRS limit for your filing status and income.
Are IRA withdrawals always penalty-free after age 59½?
Traditional withdrawals are taxed; Roth qualified withdrawals are tax-free. Non-qualified withdrawals may trigger taxes and penalties.
Does the calculator include required minimum distributions?
No; it is a simplified projection. Use detailed planning software or a tax advisor for RMD and complex scenarios.
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