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Traditional vs Roth IRA Calculator

Evaluate the tax benefits of Traditional and Roth IRAs with our calculator to make informed retirement savings decisions.

Investment · Reviewed by FreeCalculators Editorial · Updated 2026-09-01

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How it works

The Traditional vs Roth IRA Calculator helps you compare the future value of your retirement savings in a Traditional IRA versus a Roth IRA. The calculator considers your current tax rate, expected retirement tax rate, annual contributions, investment duration, and expected annual return rate. For example, if you contribute $6,500 annually to a Traditional IRA for 30 years at a 7% return, your investment grows tax-deferred. At retirement, if your tax rate is 12%, the after-tax value is calculated by subtracting taxes owed from the total value. Conversely, contributions to a Roth IRA are made after-tax, allowing your investment to grow tax-free. If you invest the same $6,500 annually in a Roth IRA, you won't owe taxes upon withdrawal, making it potentially more beneficial if your tax rate increases in retirement. By inputting your specific details, you can visualize how each option impacts your retirement savings and make an informed decision.

Tips

  • Consider your current and future tax rates when choosing between a Traditional and Roth IRA.
  • Maximize your annual contributions to take full advantage of tax benefits.
  • Regularly review your investment strategy and adjust contributions based on your financial situation.
  • Consult with a financial advisor to align your retirement savings strategy with your long-term goals.

Frequently asked questions

What is the contribution limit for IRAs in 2023?
The contribution limit for both Traditional and Roth IRAs is $6,500 for individuals under 50 and $7,500 for those 50 and older.
When can I withdraw from my Roth IRA without penalties?
You can withdraw your contributions at any time without penalties. To withdraw earnings tax-free, you must be at least 59½ years old and have held the account for at least five years.
What happens if I exceed the IRA contribution limit?
If you exceed the IRA contribution limit, you may face a 6% excess contribution penalty each year until the excess is corrected.
Can I convert my Traditional IRA to a Roth IRA?
Yes, you can convert a Traditional IRA to a Roth IRA, but you will owe taxes on any pre-tax contributions and earnings at the time of conversion.