Roth vs Traditional Calculator · filed Oct 10, 2026
Roth vs Traditional at the top of the brackets
At a 35% marginal rate, every Traditional dollar buys an unusually large deduction today — and Roth costs an unusually painful tax bill to fund. This page posts the worked example at 35% now versus 24% in retirement, plus the backdoor Roth for high earners who want both.
Worked at $24,500 a year for 25 years at 7%, 35% now vs 24% in retirement: $86,432 tax-free in Roth against $101,059 spendable in Traditional — Traditional wins by $14,627.
The worked example — $24,500 a year, 25 years, 7%
The 35% bracket makes the deduction enormous: $24,500 of Traditional contributions saves $8,575 of tax this year. Roth asks you to swallow that same $8,575 as the price of admission. When retirement income lands you in a 24% bracket, Traditional’s discount outweighs Roth’s freedom by $14,627 over 25 years.
The exception that proves the rule: if you expect to be in an even higher bracket in retirement — a big pension stacked on RMDs, or a spouse still working — Roth can still win. But for most peak earners, retirement income drops and the deduction is the deal of a career.
Want both? High earners locked out of direct Roth IRA contributions by income limits use the backdoor Roth: a nondeductible Traditional IRA contribution converted to Roth, within the 2026 IRA limit of about $7,500. It is paperwork, not a loophole — and it does not change the 401(k) verdict above.
Run your own numbers in the calculator
Posted at the bottom of the sheet
- Should high earners choose Roth or Traditional?
- Usually Traditional, because the deduction is taken at your highest rate. Worked example: $24,500 a year for 25 years at 7%, 35% now versus 24% in retirement, ends at $86,432 tax-free in Roth versus $101,059 spendable in Traditional -- a $14,627 edge for Traditional.
- What is the backdoor Roth?
- A way for earners above the Roth IRA income limits to still fund Roth: make a nondeductible Traditional IRA contribution, then convert it to Roth. The 2026 IRA contribution limit is about $7,500 (under 50). It is standard paperwork, not a loophole, and it does not change the 401(k) rate comparison.
- Can Roth ever win for a high earner?
- Yes -- if your retirement marginal rate will be higher than today’s, for example a large pension plus RMDs pushing you into a top bracket in retirement. Then paying 35% now beats paying more later.
- Does the employer match help Roth at high incomes?
- The match is pre-tax no matter what, so it behaves like Traditional money: about $4,042 of after-tax spending power in the worked example, added on top of whichever side you pick.
Filed under retirement taxes
- Roth vs Traditional CalculatorPost your own numbers — contribution, rates, years — and get the verdict stamped.
- Should I Do Roth or Traditional 401(k)?The 401(k)-specific version, posted at the 2026 deferral limit of $24,500.
- Roth vs Traditional: Marginal vs Effective RateThe rate mistake that decides the answer — and the one number you should actually use.
- Roth vs Traditional Early in Your CareerYoung, low-bracket, decades ahead: the case Roth was built for.
- Roth vs Traditional IRAThe IRA version at the 2026 contribution limit — no employer plan required.