The choice comes down to one question: will your tax rate be higher now or in retirement? Enter your numbers to see which account leaves you with more after taxes.
Roth vs Traditional$502,531 / $515,756
Your numbers
$
After-tax value at retirement
Roth IRA
$502,531
Tax-free at withdrawal
Traditional IRA
$515,756
After 22% retirement tax
Traditional comes out ahead by $13,225
Because you expect a lower tax rate in retirement, deducting now and paying tax later wins.
Compares equal pre-tax dollars. Assumes a constant return and flat tax rates. Real brackets and returns vary. This is an estimate, not tax advice.
Model the full Roth vs Traditional decision
Your real answer depends on changing brackets, Roth conversions, RMDs, and IRMAA over decades. planbend models all of it year by year, free to start.
The one question that decides it
Traditional and Roth accounts are mirror images. A Traditional IRA gives you a tax deduction now and taxes your withdrawals later. A Roth gives you no deduction now but tax-free withdrawals later. If your tax rate is identical in both periods, the two produce exactly the same after-tax result. The difference comes entirely from whether your rate is higher today or in retirement.
When Roth usually wins
Roth tends to win if you expect the same or a higher tax rate in retirement, common for younger savers early in their careers, or anyone who believes tax rates will rise. Roth also has two structural advantages: no required minimum distributions, and tax-free inheritance for your heirs. Those benefits don't show up in a simple breakeven but matter in a real plan.
When Traditional usually wins
Traditional tends to win if you expect a lower tax rate in retirement, common for high earners in their peak years who will spend less later. The upfront deduction also frees cash to invest now. Many people hedge by holding both, since no one knows future tax law with certainty.
planbend is a planning tool, not a tax advisor. This calculator assumes flat tax rates and a constant return. Real brackets shift and returns vary. For decisions about your own accounts, the Resources page can help you find a licensed professional.
Common questions
Should I choose Traditional or Roth?
It hinges on whether your tax rate is higher now or in retirement. Lower later favors Traditional; same or higher later favors Roth.
What's the core difference?
Traditional deducts now and taxes withdrawals; Roth uses after-tax money now and withdrawals are tax-free. Both grow without yearly tax.
Does a Roth have RMDs?
No required minimum distributions during the owner's lifetime, unlike Traditional IRAs which require them at 73. That's a real planning advantage.
Can I contribute to both?
Yes, as long as your combined contributions stay within the annual IRA limit. Many people split to hedge future tax uncertainty.