Traditional vs Roth IRA Calculator
Compare two simplified IRA scenarios with the same after-tax saving budget. Eligibility, deductibility and qualified withdrawals must be established separately.
Rule year: 2026 · USD · Sources checked
Traditional minus Roth after-tax scenario
Traditional contributions assumed fully deductible; Roth contributions and withdrawals assumed eligible and qualified. No other IRA contributions, tax-rate progression, fees, RMDs or early withdrawals. Both use the entered age-based 2026 reference limit, held constant. Tax savings are assumed available to fund the gross contribution.
For informational purposes only. This estimate is not financial advice, a tax return, a payroll calculation or a lender decision. See the supported circumstances and exclusions below.
How this calculator works
Equal nominal contributions are not an equal-budget comparison when one scenario receives an assumed tax deduction. This model increases the traditional gross contribution so its assumed after-tax cost equals the Roth contribution. Both grow with year-end deposits. A flat withdrawal tax is then applied only to the traditional scenario. The result depends on the tax assumptions; it does not decide which account is suitable or establish entitlement to either account.
Formula and rules
Traditional gross contribution = annual after-tax budget / (1 − assumed current tax rate). Roth contribution = budget. Traditional withdrawal value = projected gross balance × (1 − assumed retirement tax rate). Compare with the Roth qualified-withdrawal scenario.
Assumptions and limitations
Traditional contributions assumed fully deductible; Roth contributions and withdrawals assumed eligible and qualified. No other IRA contributions, tax-rate progression, fees, RMDs or early withdrawals. Both use the entered age-based 2026 reference limit, held constant. Tax savings are assumed available to fund the gross contribution.
Worked example
With a $5,000 annual after-tax budget, 20% current tax, 20% withdrawal tax, zero return and one contribution year, the traditional gross contribution is $6,250 and its after-tax value is $5,000. The Roth scenario contributes and retains $5,000.
- Traditional minus Roth after-tax scenario
- $0.00
- Traditional assumed after-tax withdrawal value
- $5,000.00
- Roth assumed qualified-withdrawal value
- $5,000.00
- Annual traditional gross contribution
- $6,250.00
Official sources and review
Reviewed against the sources below on 2026-10-06. Rates are held in versioned rule modules. Versioned rules, official source review and year-specific calculation tests.
- IRS: IRA contribution limits ↗
Combined traditional/Roth annual contributions and taxable-compensation limitations; income restrictions also apply.
- IRS: 2026 retirement contribution limits ↗
2026 employee 401(k), catch-up, IRA limits and Roth income phase-out ranges.
Common questions
Does this check whether my traditional IRA is deductible?
No. Deductibility can depend on workplace-plan coverage, income and filing status. It is an assumption you must verify before interpreting the comparison.
Why are traditional contributions larger?
They are grossed up so their assumed after-tax cost matches the Roth contribution. This keeps the comparison on the same saving-budget basis.
Does a positive difference recommend a traditional IRA?
No. It only describes the entered arithmetic scenario. Tax eligibility, distribution rules and personal circumstances can change the relevant decision.