Compare traditional and Roth IRAs on an after-tax basis.
The IRA comparison is nuanced because Roth and Traditional IRAs represent different after-tax wealth. A $6,000 Roth contribution costs you $6,000 of after-tax money; a $6,000 traditional contribution effectively costs less because of the upfront deduction. To make a fair comparison, this calculator optionally invests the traditional deduction savings in a taxable account. When tax rates don't change, the two strategies produce identical results — the divergence comes entirely from rate differences between now and retirement.
Traditional IRA after-tax value
Traditional after-tax = Pre-tax FV × (1 − retirement rate) + Reinvested savings value
Uses 2024 contribution limits and illustrative tax rates. State taxes are not included. Consult a tax advisor before making IRA contribution decisions.
Neither — they're mathematically equivalent when tax rates are the same today and in retirement. The calculator will show zero advantage either way. The choice matters only when rates differ.
A traditional IRA contribution saves you taxes today via the deduction. To make the comparison fair, you should invest those savings — otherwise you're comparing a Roth account to a traditional account plus cash sitting idle. When toggled on, the tax savings are invested in a taxable account and added to the traditional IRA's total after-tax wealth.
No. Roth IRAs are exempt from RMDs during the owner's lifetime. Traditional IRAs must take required minimum distributions starting at age 73. This is another advantage of the Roth for estate planning and tax flexibility in retirement.
Yes. You can contribute to both in the same year as long as your total contributions don't exceed the annual limit ($7,000 in 2024). Many savers split contributions to hedge against future tax rate uncertainty.