Roth vs Traditional Calculator · filed Oct 10, 2026
Roth vs Traditional IRA: same choice, smaller check
No 401(k)? The IRA carries the same one-question decision — pay the tax now or later — at the 2026 contribution limit of about $7,500. This page posts the worked example and the IRA wrinkles that change the fine print.
Worked at $7,500 a year for 30 years at 7%, 22% now vs 12% in retirement: $44,532 tax-free in Roth against $50,241 spendable in Traditional — Traditional wins by $5,709.
The worked example — $7,500 a year, 30 years, 7%
The math is the identical rate comparison as the 401(k) version, but IRAs carry their own fine print. Roth IRA contributions (not earnings) can be withdrawn any time with no tax or penalty — the account doubles as a backstop. Traditional IRA deductions phase out at higher incomes if you or a spouse has a workplace plan, and both IRAs share the 2026 limit of about $7,500 under 50.
One more IRA-only wrinkle: Roth IRAs have no required minimum distributions in your lifetime, while Traditional IRAs do starting in your 70s. For estate-minded savers that freedom is worth something the calculator cannot price.
Direct Roth IRA contributions phase out at higher incomes; earners above the limit use the backdoor Roth — a nondeductible Traditional contribution converted to Roth. The rate comparison that decides the verdict is unchanged either way.
Run your own numbers in the calculator
Posted at the bottom of the sheet
- Should I choose a Roth or Traditional IRA?
- Same rule as everywhere: compare your marginal rate today with your rate in retirement. Worked example: $7,500 a year for 30 years at 7%, 22% now versus 12% in retirement, ends at $44,532 tax-free in Roth versus $50,241 spendable in Traditional -- a $5,709 edge for Traditional.
- What is the 2026 IRA contribution limit?
- About $7,500 if you are under 50; catch-up contributions add more at 50 and up. The worked example on this page uses the full $7,500. Roth and Traditional IRA contributions share one combined limit.
- Can I withdraw Roth IRA contributions early?
- Yes -- contributions (not earnings) come out any time, tax- and penalty-free. That flexibility is a genuine Roth advantage the math does not price, especially for savers who want a backstop.
- Do Roth IRAs have required minimum distributions?
- No -- Roth IRAs have no lifetime RMDs, while Traditional IRAs require withdrawals starting in your 70s. For savers who want to leave the account growing, that is a real Roth edge beyond the rate comparison.
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 for High EarnersWhen your rate is already the top one: the backdoor and the break-even.
- Roth vs Traditional Early in Your CareerYoung, low-bracket, decades ahead: the case Roth was built for.