Roth vs Traditional IRA / 401(k) Calculator
Compare Roth and traditional retirement contributions: which leaves you more to spend in retirement, based on your tax rate now and in retirement.
For information and education only — not financial advice. Results are estimates based on the numbers you enter; check important decisions with a qualified professional.
How to use
- 1Enter the pre-tax amount you can set aside each year and the years until retirement.
- 2Enter your marginal tax rate now and the rate you expect in retirement.
How it's calculated
Traditional: the full pre-tax amount is invested, and withdrawals are taxed at the retirement rate. Roth: the amount minus today's tax is invested, and withdrawals are tax-free. If the rates are equal, the results are equal.
Frequently asked questions
What's the simple rule?
If you expect a lower tax rate in retirement than now, traditional tends to win; if higher, Roth tends to win.
Why might Roth be better even at equal rates?
Roth accounts have no required minimum distributions for the original owner, and tax-free income can keep other taxes (like on Social Security) lower.
Can I do both?
Yes. Many people split contributions to hedge against uncertainty about future tax rates.