IRA Calculator — Traditional vs Roth IRA Comparison

Free IRA calculator. Compare Traditional vs Roth IRA growth, contribution limits, tax savings, Roth phase-outs, and required minimum distribution timing using the modeled tax settings on this page.

$
$
$
%
%
%
Effective Annual Contribution
$7,500.00
Limit: $7,500.00
Balance at Retirement
$1,463,840.00
Over 35 years at 7% return
After-Tax Retirement Value
$1,244,264.00
Traditional taxed at 15% in retirement
Monthly Retirement Income
$4,148.00
Based on 4% withdrawal rate
Annual Tax Savings (Traditional)
$1,650.00
At 22% marginal tax rate
Total Contributions
$262,500.00
Investment growth: $1,161,340.00
First RMD (age 75)
$77,920.00
Traditional only — Roth has no owner-lifetime RMDs
Roth Eligibility
Full
Income within phase-out limits

Traditional vs Roth After-Tax Value

Traditional: $1,244,264.00
Roth: $1,463,840.00

Growth Projection

YearAgeTraditionalRoth
131$50,300.00$50,300.00
232$61,321.00$61,321.00
333$73,113.00$73,113.00
434$85,731.00$85,731.00
535$99,233.00$99,233.00
1040$182,309.00$182,309.00
1545$298,829.00$298,829.00
2050$462,254.00$462,254.00
2555$691,465.00$691,465.00
3060$1,012,946.00$1,012,946.00
3565$1,463,840.00$1,463,840.00
Planning notes, formulas, and examples

About the IRA Calculator — Traditional vs Roth IRA Comparison

The IRA Calculator helps you project Individual Retirement Account growth, compare Traditional and Roth IRA strategies, and understand contribution limits, tax effects, and required minimum distribution timing. Whether you are deciding between account types or reviewing your annual contribution plan, this worksheet gives you a side-by-side view of the tradeoffs.

An Individual Retirement Account (IRA) is a tax-advantaged investment account that can supplement or replace workplace-plan savings. Traditional IRA contributions may reduce taxable income in the contribution year, while Roth IRA contributions are made with after-tax dollars and can be withdrawn tax-free in retirement if the distribution rules are met. This page uses the IRS contribution limit and catch-up settings for the modeled tax year.

This calculator projects both Traditional and Roth balances, estimates after-tax retirement value, checks Roth IRA income eligibility for the selected tax year, and estimates the first RMD timing for Traditional IRAs based on the SECURE 2.0 birth-year bands.

When This Page Helps

The Traditional-versus-Roth decision can materially affect lifetime taxes and after-tax retirement income. This calculator puts both account types on the same footing by using the same contribution and return assumptions, then showing where upfront tax savings, future taxes, and Roth eligibility push the result in one direction or the other.

How to Use the Inputs

  1. Select Traditional or Roth as the primary account type you want to view.
  2. Enter your age, income, and annual IRA contribution.
  3. Enter your IRA balance, retirement age, and expected return.
  4. Set your tax rate assumptions for contribution years and retirement.
  5. Choose filing status and tax year for the Roth phase-out check.
  6. Review the projected balances, after-tax value, and Roth-eligibility output.
Formula used
Future Value = PV × (1 + r)^n + PMT × ((1 + r)^n − 1) / r Traditional After-Tax Value = Future Value × (1 − Retirement Tax Rate) Roth After-Tax Value = Future Value Traditional Tax Savings on Contribution = Contribution × Marginal Tax Rate Roth Phase-Out = Reduced contribution when MAGI enters the selected IRS phase-out band First RMD = Projected Traditional balance ÷ Uniform Lifetime Table factor at the applicable start age

Example Calculation

Result: Traditional: $1,463,840 ($1,244,264 after-tax) vs Roth: $1,463,840 (tax-free)

Contributing $7,500 per year for 35 years at 7% builds about $1,463,840 in either account type. The Traditional IRA saves about $1,650 per year in taxes in the contribution year but is worth about $1,244,264 after a 15% retirement tax. The Roth IRA has no upfront deduction but keeps the full projected balance tax-free.

Tips & Best Practices

  • Review Roth phase-out limits before contributing directly.
  • Traditional and Roth can both be useful if you want tax diversification in retirement.
  • Contributing earlier in the year gives the money more time to compound.
  • Tax rates in the contribution years versus expected retirement tax rates are one of the biggest decision factors.
  • If you hold pre-tax IRA money, model the pro-rata effect before assuming a backdoor Roth is tax-free.

Traditional vs Roth IRA

The core difference is timing of taxation. A Traditional IRA may reduce taxes in the contribution year if the contribution is deductible, but withdrawals are taxed later. A Roth IRA gives no upfront deduction, but qualified withdrawals are tax-free. The better choice depends on your tax bracket in the contribution year, the bracket you expect in retirement, and whether you value future tax-free cash flow over an upfront deduction.

Roth IRA Phase-Outs

Direct Roth IRA contributions are limited by MAGI. This page applies the selected tax-year phase-out bands so you can see whether your planned contribution is fully allowed, partially reduced, or disallowed for direct Roth contributions.

RMD Timing

Traditional IRA balances are eventually subject to required minimum distributions. SECURE 2.0 raised the start age, but the exact age depends on birth year. This calculator uses the applicable age bands to estimate when the first RMD would begin under federal rules.

Sources & Methodology

Last updated:

Methodology

This worksheet projects annual IRA contributions using a fixed return assumption, compares Traditional and Roth after-tax balances, estimates the first required minimum distribution using the applicable SECURE 2.0 age bands, and applies the selected tax-year Roth contribution phase-out thresholds. It is a planning model, not tax, legal, or investment advice.

Sources

Frequently Asked Questions

  • Traditional IRA contributions may be tax-deductible in the contribution year, but withdrawals are generally taxed as ordinary income. Roth IRA contributions are made with after-tax dollars, but qualified withdrawals are tax-free.

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