RetirementTraditional IRAvsRoth IRA

Traditional IRA vs Roth IRA — Which Is Right for You?

Compare Traditional and Roth IRA tax benefits and retirement value based on your tax situation.

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Your Numbers

Annual Contribution

Current Age

Retirement Age

Current Tax Rate

Retirement Tax Rate

Expected Annual Return

Comes out ahead

$583,553

Total Pre-Tax Contributions$210,000

Gross Growth$711,650

Tax Savings Now (Total)$46,200

Taxes at Retirement$128,097

Net After-Tax Value$583,553

$555,087

After-Tax Contributions$163,800

Tax-Free Growth$391,287

Taxes at Retirement$0

Net After-Tax Value$555,087

Under these assumptions

Traditional IRA comes out ahead

+$28,466

more after-tax at retirement

The Traditional IRA puts $28,466 more in your pocket after 30 years. At 22% now vs 18% in retirement, deferring taxes with the Traditional IRA wins.

A model of the inputs above, not financial advice. Real outcomes depend on rates, taxes and choices this comparison does not include.