Roth vs Traditional IRA Calculator - Compare Tax Brackets (2026)

Q: Can I contribute to both a Roth IRA and Traditional IRA in the same year?

Yes, but your combined total contributions across both accounts cannot exceed the annual IRS limit ($7,000 in 2024/2026, or $8,000 for age 50+).

Q: Are there income limits for contributing to a Roth IRA?

Yes. In 2024/2026, single filers phase out of Roth IRA eligibility between $146,000 and $161,000 of Modified Adjusted Gross Income (MAGI). High earners can still use the 'Backdoor Roth IRA' strategy.

Q: What is the 5-year rule for Roth IRA withdrawals?

You can withdraw your original Roth contributions penalty-free and tax-free at any time. However, to withdraw earnings tax-free, you must be at least age 59½ and the Roth IRA must have been open for at least 5 tax years.

Compare Roth IRA vs Traditional IRA retirement balances based on your current income tax bracket, expected retirement tax rate, and tax-free spendable cash.

⚙️ Configuration & Inputs

Current Age Your age today

Retirement Age Target retirement milestone

Annual Contribution ($) 2024-2026 IRS limit: $7,000 ($8,000 if 50+)

Expected Annual Return (%) Historical S&P 500 average ~8% - 10%

Current Tax Bracket (%) Federal income tax rate today

Expected Retirement Tax Bracket (%) Estimated tax rate during withdrawal

📊 Results & Analysis

Recommended Choice Traditional IRA +$124,352 more spendable cash

Roth IRA Spendable (Tax-Free) $1,206,236 0% Tax on Withdrawals

Traditional IRA Spendable $1,330,588 Gross: $1,512,032 (After 12% Tax)

Annual Tax Savings Today $1,540 / year Immediate deduction with Traditional

Total Lifetime Contributions $245,000 35 years of discipline

Break-Even Tax Rate 22.0% If retirement tax < 22%, Traditional wins

Roth vs. Traditional IRA: The Golden Tax Decision

Choosing between a Roth IRA and a Traditional IRA comes down to one simple question: Will your tax rate be higher today, or higher when you retire?

1. How a Roth IRA Works (Pay Taxes Today)

You contribute post-tax dollars (no upfront tax deduction).
Your investments grow 100% tax-free.
All qualified withdrawals in retirement are 100% tax-free!
No Required Minimum Distributions (RMDs) during the owner's lifetime.

2. How a Traditional IRA Works (Pay Taxes Tomorrow)

You contribute pre-tax dollars, lowering your taxable income this year.
Your investments grow tax-deferred.
Withdrawals in retirement are taxed as ordinary income.
Mandatory RMDs begin at age 73 (or 75 under SECURE 2.0).

3. The Deciding Rule of Thumb

If you are early in your career in a low tax bracket (10% or 12%), the Roth IRA is almost always superior. If you are in peak earning years (24% to 37%), the upfront deduction of a Traditional IRA is often more beneficial, provided you invest the annual tax savings.

Frequently Asked Questions

Yes, but your combined total contributions across both accounts cannot exceed the annual IRS limit ($7,000 in 2024/2026, or $8,000 for age 50+).

Yes. In 2024/2026, single filers phase out of Roth IRA eligibility between $146,000 and $161,000 of Modified Adjusted Gross Income (MAGI). High earners can still use the 'Backdoor Roth IRA' strategy.

You can withdraw your original Roth contributions penalty-free and tax-free at any time. However, to withdraw earnings tax-free, you must be at least age 59½ and the Roth IRA must have been open for at least 5 tax years.