IRA Calculator

Compare Traditional vs Roth IRA and project retirement savings.

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Result

Fill in the fields above, then press Calculate.

The IRA Calculator compares Traditional and Roth IRAs side-by-side, projecting retirement balance and after-tax income. This tool helps you understand tax deferral vs tax-free growth and decide which IRA type best fits your tax situation and retirement goals.

Enter your age, retirement age, current IRA balance, and annual contribution. Set your current and expected retirement tax rates to compare Traditional vs Roth IRA outcomes. The calculator shows projected balances and after-tax values for both options.

Examples

Young Professional IRA Comparison

A 30-year-old contributing $6,500/year at 7% return with a 22% current tax rate and 15% retirement rate. Traditional IRA grows to ~$1.02M pre-tax ($867K after-tax). The Roth IRA reaches the same balance but all withdrawals are tax-free.

Frequently Asked Questions

Traditional vs Roth IRA: which is better?
If you expect a lower tax rate in retirement, Traditional is usually better because you defer taxes to a lower bracket. If you expect equal or higher rates, Roth wins since withdrawals are tax-free.
What are the IRA contribution limits?
For 2024, the limit is $7,000 per year ($8,000 if you are 50 or older). These limits can change annually with inflation adjustments.
When can I withdraw from an IRA without penalty?
Generally at age 59 and a half. Early withdrawals from a Traditional IRA incur a 10% penalty plus income tax. Roth IRA contributions (not earnings) can be withdrawn penalty-free at any time.

Quick Tips

  • •Traditional IRA is usually better if you expect to be in a lower tax bracket in retirement.
  • •Roth IRA is superior if you expect equal or higher tax rates in retirement, as withdrawals are completely tax-free.
  • •Max out IRA contributions before investing in taxable accounts; tax-deferred growth is powerful over decades.
  • •At age 50, you can contribute an additional $1,000 catch-up contribution to make up for years you couldn't save.
  • •Roth conversions (converting Traditional to Roth) can be tax-efficient in low-income years. Consult a tax professional.