IRA Calculator: Roth vs Traditional Comparison

IRA Calculator: Roth vs. Traditional Comparison

Calculate your 2026 IRA contributions and growth. Compare Roth vs. Traditional, model 2026 SECURE 2.0 catch-ups, and check phase-out limits to optimize your retirement strategy.

What This Calculator Does

This IRA calculator compares Roth and Traditional IRA growth side by side using 2026 contribution limits and income phase-outs. Enter your age, income, filing status, and expected retirement tax rate to see projected after-tax balances for both account types. An interactive slider lets you adjust the retirement tax rate in real time to find the break-even point where Roth and Traditional yield equal results.

What You'll Get:

Projected after-tax retirement balance for both Roth and Traditional IRA, a growth comparison chart, the break-even retirement tax rate, and phase-out warnings if your income exceeds eligibility thresholds.
Who It's For:

Anyone deciding between Roth and Traditional IRA contributions, retirement savers checking 2026 contribution limits, and those near income phase-out ranges who need to understand eligibility.
Scope & Limits:

Models federal tax brackets only. Assumes consistent annual contributions and a single average return rate. Does not account for state taxes, RMDs, or Backdoor Roth strategies, these require additional planning with a financial advisor.

How the Math Works

The calculator projects IRA growth using compound interest, then applies tax treatment to determine after-tax retirement balances. For Traditional IRAs, contributions may be tax-deductible now but withdrawals are taxed at your retirement rate. For Roth IRAs, contributions are after-tax but withdrawals are completely tax-free.

Future Value (Compound Growth):

$FV = C \times \frac{(1+r)^n - 1}{r}$
where C = annual contribution, r = annual return rate, n = years until retirement. This models the growth of consistent annual contributions compounding over time.
Traditional After-Tax Balance:

$\text{After-Tax}_{\text{Trad}} = FV \times (1 - t_r)$
where t_r is your retirement tax rate. All Traditional IRA withdrawals are taxed as ordinary income.
Roth After-Tax Balance:

$\text{After-Tax}_{\text{Roth}} = FV$
Roth withdrawals are completely tax-free in retirement, so the full future value is available to spend.
Break-Even Rate:

The retirement tax rate where both accounts produce equal after-tax balances. If your actual retirement rate is above this, Roth wins; below it, Traditional wins.

How to Use This Calculator

Enter your current age, annual income, filing status, and existing IRA balance. Set your planned annual contribution (up to $7,500, or $8,600 if age 50+), expected return rate, and target retirement age. Adjust the retirement tax rate slider to see how the Roth vs. Traditional comparison changes in real time.

Personal Details:

Age, income, and filing status determine contribution limits and phase-out eligibility. The calculator checks whether your income exceeds Roth or Traditional deductibility thresholds.
Contribution Amount:

Enter your planned annual IRA contribution. The calculator caps it at the 2026 limit ($7,500, or $8,600 with catch-up for age 50+).
Retirement Tax Rate Slider:

The key variable in the Roth vs. Traditional decision. Drag the slider to see the growth chart and winner update instantly. The break-even point is displayed so you know the exact crossover rate.
Results:

Review the growth chart, after-tax balances for each account type, the break-even rate, and any phase-out warnings for your income level.

Understanding 2026 IRA Contribution Limits

Standard and Catch-Up Limits

For 2026, the IRS has set the standard IRA contribution limit at $7,500, up from previous years. This applies to both Traditional and Roth IRAs, and the limit is combined, you can't contribute $7,500 to each.

Standard Limit:

$7,500 for individuals under age 50
Catch-Up Limit:

$8,600 for individuals age 50 and older (additional $1,100)
Combined Limit:

Total contributions to all IRAs cannot exceed these limits
Spousal IRAs:

Non-working spouses can contribute based on partner's income, effectively doubling household capacity

The catch-up contribution allows older workers to accelerate retirement savings as they approach retirement age.

SECURE 2.0 and IRAs

While the SECURE 2.0 Act's "Super Catch-Up" ($11,250 for ages 60-63) applies to workplace retirement plans, not IRAs, it's important to understand the broader retirement landscape.

Workplace Plans:

401k, 403b plans have Super Catch-Up of $11,250 for ages 60-63
IRA Limits:

IRAs maintain the standard $1,100 catch-up for age 50+
Strategy:

Maximize workplace plan contributions first (especially with Super Catch-Up), then contribute to IRAs
Roth Mandate:

High earners ($150k+) must make workplace catch-ups as Roth, signaling IRS preference for Roth for high earners

Roth vs. Traditional: The Tax Bracket Decision

When Roth Wins

Roth IRA is typically better when you expect your retirement tax rate to be higher than your current rate. This is common for younger workers, those in lower tax brackets now, or those who expect significant income growth.

Tax-Free Growth:

All earnings grow tax-free and withdrawals are completely tax-free in retirement
No RMDs:

Roth IRAs have no Required Minimum Distributions, allowing funds to grow indefinitely
Estate Planning:

Roth IRAs are excellent for passing wealth to heirs tax-free
Example:

A 25-year-old in the 12% bracket who retires in the 22% bracket saves significantly with Roth

Roth contributions are made with after-tax dollars, so you pay taxes now but never again on those funds or their growth.

When Traditional Wins

Traditional IRA is typically better when you expect your retirement tax rate to be lower than your current rate. This is common for high earners who expect lower income in retirement.

Upfront Deduction:

Contributions may be tax-deductible, reducing your current tax bill
Tax-Deferred Growth:

Earnings grow tax-deferred until withdrawal
Lower Retirement Rate:

If you retire in a lower bracket, you pay less tax on withdrawals than you saved on contributions
Example:

A 45-year-old in the 32% bracket who retires in the 15% bracket saves significantly with Traditional

Traditional IRA withdrawals are taxed as ordinary income in retirement, so the benefit depends on the tax rate difference.

The Tax Bracket Slider

This calculator includes an interactive tax bracket slider that lets you see how changing your projected retirement tax rate affects the Roth vs. Traditional comparison in real-time.

Live Updates:

As you adjust the retirement tax rate slider, the growth chart and winner calculation update instantly
Break-Even Point:

Find the exact retirement tax rate where Roth and Traditional yield equal results
Sensitivity Analysis:

See how sensitive your choice is to changes in projected retirement income

2026 Phase-Out Ranges and Eligibility

Roth IRA Phase-Out Ranges

Roth IRA contributions are phased out based on Modified Adjusted Gross Income (MAGI). If your income exceeds these ranges, you cannot contribute directly to a Roth IRA.

Single:

Phase-out: $153,000 - $168,000 (2026)
Married Filing Jointly:

Phase-out: $242,000 - $257,000 (2026)
Married Filing Separately:

Phase-out: $0 - $10,000 (very limited)
Solution:

If ineligible, use Backdoor Roth strategy: contribute to non-deductible Traditional IRA, then convert to Roth

The phase-out is calculated proportionally. If you're in the middle of the range, you can contribute a reduced amount.

Traditional IRA Deductibility Phase-Outs

Traditional IRA deductibility depends on whether you (or your spouse) are covered by a workplace retirement plan and your MAGI.

Not Covered by Plan:

Full deduction available regardless of income
Covered by Plan - Single:

Phase-out: $81,000 - $96,000 (2026)
Covered by Plan - Married Joint:

Phase-out: $129,000 - $144,000 (2026)
Above Phase-Out:

Contributions are not deductible, consider Backdoor Roth instead

Even if contributions aren't deductible, Traditional IRAs still offer tax-deferred growth, though Roth conversion may be more beneficial.

IRA Calculator FAQ

What is the difference between a Roth IRA and a Traditional IRA?

Roth IRA: Contributions are made with after-tax dollars, but withdrawals in retirement are completely tax-free. Traditional IRA: Contributions may be tax-deductible (depending on income and workplace plan coverage), but withdrawals are taxed as ordinary income in retirement. The choice depends on whether you expect your tax rate to be higher now or in retirement.

What are the 2026 IRA contribution limits?

For 2026, the standard IRA contribution limit is $7,500. If you're age 50 or older, you can contribute an additional $1,100 as a catch-up contribution, for a total of $8,600. These limits apply to both Traditional and Roth IRAs combined, you can't contribute $7,500 to each.

What is the SECURE 2.0 "Super Catch-Up" for IRAs?

The SECURE 2.0 Act's "Super Catch-Up" ($11,250) applies to workplace retirement plans (401k, 403b) for ages 60-63, not IRAs. IRA catch-up remains $1,100 for age 50+. However, understanding the Super Catch-Up helps inform your overall retirement strategy, as you may want to maximize workplace plans first, then contribute to IRAs.

Can I deduct my Traditional IRA contribution?

Traditional IRA deductibility depends on your Modified Adjusted Gross Income (MAGI) and whether you (or your spouse) are covered by a workplace retirement plan. If not covered, you can deduct the full contribution. If covered, deductibility phases out: Single ($81,000-$96,000), Married Joint ($129,000-$144,000) in 2026. Above these ranges, contributions are not deductible.

What is a "Backdoor Roth" strategy?

A Backdoor Roth is a strategy for high earners who exceed Roth IRA income limits. You contribute to a non-deductible Traditional IRA, then immediately convert it to a Roth IRA. This allows you to effectively contribute to a Roth IRA regardless of income, though you'll pay taxes on any gains at conversion. This is a common 2026 workaround for phase-out restrictions.

How do I know if Roth or Traditional is better for me?

Generally, choose Roth if you expect your retirement tax rate to be higher than your current rate (younger workers, lower current income). Choose Traditional if you expect your retirement tax rate to be lower (higher current income, expect lower income in retirement). This calculator compares both options based on your specific tax brackets to show you the winner.

IRA Calculator: Roth vs. Traditional Comparison

Personal profile

IRA type

Contributions & growth

2026 tax lens

Roth vs. traditional balance over time

IRA Contribution Guide: Roth vs. Traditional

Strategic IRA Insights

The 2026 "Super Catch-Up"

Roth Mandatory Catch-Up

The Spousal IRA

The Contribution Timing Strategy