Roth vs Traditional IRA Calculator

Roth vs Traditional IRA Calculator

Personal Information

Current Age:

Retirement Age:

Investment Details

Annual Contribution ($):

$7,000 limit for 2024 ($8,000 if 50 or older)

Expected Annual Return (%):

Tax Information

Current Tax Rate (%):

Expected Retirement Tax Rate (%):

Note: Your tax rate in retirement is often lower than during your working years since you typically have less income. However, future tax rates may change based on legislation.

IRA Comparison Results

Traditional IRA

Annual Contribution: $6,000

Tax Savings Now: $1,320

Account Value at Retirement: $685,700

Taxes Due at Withdrawal: $102,855

After-Tax Retirement Amount: $582,845

Roth IRA

Annual Contribution: $6,000

Tax Paid Now: $1,320

Account Value at Retirement: $685,700

Taxes Due at Withdrawal: $0

After-Tax Retirement Amount: $685,700

Recommendation

Based on your inputs, a Roth IRA would provide $102,855 more after-tax retirement money compared to a Traditional IRA. This is primarily because your expected tax rate in retirement (15%) is lower than your current tax rate (22%).