Skip to main content
Calculators

Retirement Calculators · United States

Roth vs. Traditional Calculator

Compare the after-tax value of Roth and Traditional contributions, find your break-even retirement tax rate, and check 2026 IRA eligibility from your income.

Calculated in your browser only · inputs are not saved2026 limits · IRS Notice 2025-67 and Pub. 590-A · annual compounding
USD

The same dollar figure goes into the account either way; see the comparison basis below.

yrs
%

Your top federal (plus state) bracket today.

%

Marginal rate you expect on withdrawals.

%
%

Used only for the invested tax savings.

Tax savings option

Applies to the "same contribution amount" basis. Gains are taxed once at withdrawal.

IRA eligibility checker (2026)

USD
Age

Enter your values and press Compare Roth vs. Traditional

After-tax value at retirement

-

  • 2026 IRA limit (Roth + Traditional combined)$7,500 ($8,600 at 50+)
  • Roth IRA phase-out (single / head of household)$153,000 to $168,000
  • Roth IRA phase-out (married filing jointly)$242,000 to $252,000
  • Roth IRA phase-out (married filing separately)$0 to $10,000
  • Traditional IRA deduction, covered by a plan (single)$81,000 to $91,000
  • Traditional IRA deduction, covered by a plan (joint)$129,000 to $149,000
  • Spouse covered, you are not (joint)$242,000 to $252,000

    How it works

    How the Roth vs. Traditional comparison works

    The choice comes down to one question: is your tax rate higher today or in retirement? Same pre-tax money grows the same in both accounts; the difference is when the tax is paid.

    1. Enter the contribution and tax rates

      Use your current marginal rate and your best guess for the marginal rate you will pay on withdrawals. State income tax counts if your state taxes retirement income.

    2. Choose a comparison basis

      "Same take-home pay" is the fair test: a $7,500 Traditional contribution costs about $5,700 of take-home at 24%, so Roth contributes $5,700. "Same contribution amount" puts $7,500 in both and lets you invest the Traditional tax savings elsewhere.

    3. Read the winner and check eligibility

      See each account's after-tax value, the break-even retirement tax rate and the 2026 IRA eligibility result for your income and workplace plan.

    Formulas

    Future value factor FV = ((1 + r)^n − 1) ÷ r (contributions at year end)Same take-home: Roth = contribution × (1 − tax now) × FV · Traditional = contribution × FV × (1 − tax in retirement)Same contribution: Roth = contribution × FV · Traditional = contribution × FV × (1 − tax in retirement) + taxable accountTaxable account = savings value − capital gains rate × (savings value − savings contributed), where savings = contribution × tax nowBreak-even retirement tax rate = 1 − (Roth value − taxable account) ÷ (contribution × FV)

    Key insight: on the same-take-home basis the break-even rate equals your current rate. If you expect a lower rate in retirement, Traditional wins; a higher rate, Roth wins; equal rates tie. Roth also has no required minimum distributions for the original owner of a Roth IRA, and qualified withdrawals do not raise your taxable income or Medicare premiums.

    2026 IRA eligibility rules

    The IRA limit is $7,500 for 2026 ($8,600 at age 50 or older), shared between Roth and Traditional IRAs. Roth contributions phase out at MAGI $153,000 to $168,000 (single or head of household) and $242,000 to $252,000 (married filing jointly); for married filing separately who lived with a spouse the range is $0 to $10,000. If you are inside a range, the reduced limit follows the IRS worksheet method: the limit is reduced by limit × (MAGI − lower end) ÷ range width, with the reduction rounded up to the next $10 and a $200 minimum. The Traditional IRA deduction only phases out if you or your spouse is covered by a workplace plan: $81,000 to $91,000 (single), $129,000 to $149,000 (joint, you are covered) or $242,000 to $252,000 (joint, you are not covered but your spouse is). Anyone with earned income can make a nondeductible Traditional IRA contribution at any income.

    Limitations: the model assumes a constant tax rate, one contribution each year at year end, a constant return and no fees. It ignores state-specific rules, the saver's credit, Roth conversion, Social Security taxation and required minimum distributions. 401(k) comparisons use the same logic but have different limits ($24,500 in 2026, with no income cap for Roth 401(k) contributions).

    FAQ

    Is Roth or Traditional better?

    If your marginal tax rate in retirement will be lower than today, Traditional usually wins; if it will be higher, Roth usually wins. If the rates are equal and you compare equal take-home cost, the two are the same. Many savers split contributions to diversify their future tax exposure.

    What is the break-even retirement tax rate?

    It is the tax rate on withdrawals at which Roth and Traditional end up with the same after-tax value. On a same-take-home basis it equals your current marginal rate.

    Can I contribute to a Roth IRA if I earn too much?

    Direct Roth IRA contributions are not allowed at or above $168,000 MAGI (single) or $252,000 (joint) in 2026. Some people use a nondeductible Traditional IRA followed by a conversion (the backdoor Roth), which has its own tax rules, so check with a professional.

    Does the 2026 IRA limit apply to both accounts together?

    Yes. $7,500 ($8,600 if 50 or older) is the combined maximum across all of your Roth and Traditional IRAs. Roth 401(k) and Traditional 401(k) contributions have a separate $24,500 limit.

    Why invest the tax savings?

    If you put the same $7,500 in both accounts, the Traditional account costs you $1,800 less in tax at a 24% bracket. Ignoring that saving would unfairly favor Roth, so the calculator can invest it in a taxable account and tax the gains.

    Estimates for education and planning only. This is not tax, legal or investment advice; check IRS.gov or a tax professional for your situation. Sources: IRS Notice 2025-67, IRS Publication 590-A, Congressional Research Service RL34397.

    Last updated:

    Tools that work well together

    401(k) Calculator

    Project your 401(k) balance with the 2026 limits, employer match and catch-up.

    Use now

    Retirement Calculator (4% Rule)

    Find your retirement number and see if your savings are on track.

    Use now

    Federal Income Tax Calculator

    Estimate your 2026 federal income tax, marginal and effective rate by filing status.

    Use now

    Capital Gains Tax Calculator

    Short-term and long-term capital gains tax plus the 3.8% NIIT on stock sales.

    Use now