Traditional vs Roth IRA: Which One Leaves You With More Money?
How much will your IRA be worth?
IRA Calculator
Traditional vs Roth · After-Tax Wealth · Break-Even Bracket · Growth Projection
Results update in real time as you adjust any input.
Your Profile
Used to check Roth eligibility
Raises 2024 limit from $7,000 to $8,000/year
Contribution & Returns
2024 max: $7,000 (under 50) · $8,000 (50+)
Tax Rates
Roth costs more now if this is higher
Traditional wins if this is lower than today
Results are estimates only and do not constitute financial, tax, or legal advice. Always consult a qualified professional before making financial decisions.
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The IRA choice — Traditional vs Roth — is one of the most impactful tax decisions you'll make for retirement. Both accounts grow tax-advantaged, but the difference is when you pay taxes: Traditional IRA gives you a tax deduction now and taxes withdrawals in retirement. Roth IRA gives no upfront deduction but lets your money grow and be withdrawn completely tax-free. The conventional wisdom is "use Roth if you expect to be in a higher tax bracket in retirement, Traditional if you expect to be lower." But the reality is more nuanced — it depends on your current income, expected retirement income, state taxes, required minimum distributions, estate planning goals, and how long you have to compound. This calculator projects both account types side by side using your inputs: current age, retirement age, annual contribution, current income and tax bracket, expected retirement tax rate, and assumed return. It shows you the tax savings today from Traditional, the tax-free balance of Roth, and critically — the after-tax value of both at retirement so you can see which truly leaves you with more money in your pocket. The contribution limit for 2024 is $7,000 ($8,000 if age 50+), with Roth phasing out at incomes over $146,000 (single) or $230,000 (married). Traditional deductibility phases out based on income and whether you have a workplace plan.
- →Deciding between a Traditional IRA and Roth IRA for this year's contribution
- →Comparing after-tax retirement wealth under different tax rate scenarios
- →Evaluating whether to do a Roth conversion on existing Traditional IRA funds
- →Understanding how contribution limits and income phase-outs affect your IRA strategy
- →Modeling how many years of Roth compounding it takes to offset the upfront tax cost
Marcus, 32, earns $85,000 and is in the 22% federal tax bracket. He can contribute $7,000 to either a Traditional or Roth IRA. The Traditional IRA saves him $1,540 in taxes this year. Using the calculator with a 7% return over 33 years to age 65 and assuming a 22% retirement tax rate, both options produce nearly identical after-tax wealth. But if Marcus expects his retirement income to be lower — putting him in the 12% bracket — the Traditional IRA wins by roughly $15,000.
What are the IRA contribution limits for 2024?
The 2024 IRA contribution limit is $7,000 per person ($8,000 if age 50 or older). This limit applies to the total combined contributions across all Traditional and Roth IRAs you own.
Can I contribute to both a Traditional and Roth IRA in the same year?
Yes — you can contribute to both a Traditional and Roth IRA in the same tax year, but your total combined contributions across both accounts cannot exceed the annual limit ($7,000 in 2024, or $8,000 if age 50 or older). You can split the limit any way you choose — for example $4,000 to Traditional and $3,000 to Roth.
What is a Roth IRA income limit?
For 2024, Roth IRA contributions phase out for single filers with MAGI between $146,000–$161,000, and for married filing jointly between $230,000–$240,000. Above these limits, you cannot contribute to a Roth IRA directly (though a Backdoor Roth conversion may be an option).
What's a Roth conversion?
A Roth conversion moves money from a Traditional IRA (or 401k) to a Roth IRA. You pay taxes on the converted amount in the year of conversion, but the money then grows tax-free. This can be advantageous in low-income years or to avoid future RMDs.
Do Traditional IRAs have required minimum distributions (RMDs)?
Yes — Traditional IRAs require minimum distributions starting at age 73 (as of 2023 SECURE 2.0 Act). Roth IRAs have no RMDs during the owner's lifetime, making them powerful for estate planning.