Roth vs Traditional IRA Comparator
Compare Roth vs Traditional IRA under assumed tax rates now vs retirement and expected returns (simplified).
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Compare Roth and Traditional retirement accounts
A Roth IRA and a Traditional IRA are taxed at opposite ends, one now, one later, and which is better depends on your tax rates. This comparator weighs them under your assumed tax rates now versus in retirement and an expected return, so you can see which leaves you more.
Why the tax timing is everything
A Traditional IRA gives you a tax deduction now and taxes withdrawals in retirement; a Roth is funded with after-tax money now and withdrawals are tax-free. The better choice hinges on whether your tax rate is higher now or in retirement: if you expect a lower rate in retirement, deferring with a Traditional wins; if higher, paying tax now with a Roth wins. Because that comparison depends on rates that are personal and uncertain, running your own numbers is the only way to decide sensibly.
Your numbers, both ways
This is an estimate for planning from the figures you enter, not financial advice, and real outcomes depend on rates and rules that change. Confirm anything important with the relevant institution or a qualified adviser. The calculation runs entirely in your browser, so your financial figures are never uploaded.
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Frequently Asked Questions
What is the core difference between Roth and Traditional?
A Traditional IRA deducts tax now and taxes withdrawals later; a Roth is funded with after-tax money and withdrawals are tax-free. The tax timing is opposite.
Which is better for me?
It depends on whether your tax rate is higher now or in retirement. Lower later favours Traditional; higher later favours Roth. The comparator uses your assumed rates.
Why does the expected return matter?
Because both grow tax-advantaged, and the size of the eventual balance affects how much the tax treatment matters. The comparison uses the return you assume.
Can I have both?
Many people split contributions to hedge the uncertainty about future tax rates. The comparator helps you see the trade-off first.
Is this financial advice?
No. It is a comparison under your assumptions. Confirm rules and limits with a professional.
Privacy & Security
Calculated locally in your browser. Use as an estimate and confirm rules for your situation.
How to Use
Enter contribution, return, and tax assumptions to compare outcomes.
Disclaimer: This tool is provided "as is" without warranty of any kind. Results are for educational and utility purposes.
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