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Roth vs traditional decision guide
This calculator compares after-tax outcomes based on your current and expected retirement tax rates. Use it to explore tradeoffs, not to predict exact results.
Tax timing
Traditional accounts defer taxes now, while Roth accounts pay taxes upfront for tax-free withdrawals later.
Tax diversification
Many savers mix account types to hedge future tax uncertainty.
Rules and limits
Contribution limits and eligibility rules change over time, so verify current guidance.
When Roth can be attractive
- You expect higher tax rates later.
- You are early in your career and in a lower bracket.
- You want more flexibility with withdrawals in retirement.
When traditional can be attractive
- You want the deduction today to lower taxable income.
- You expect a lower tax rate in retirement.
- You prefer higher contributions with pre-tax dollars.
Other considerations
- Required minimum distributions vary by account type.
- Income eligibility rules can limit Roth contributions.
- Employer plan features may influence the decision.
Roth vs traditional calculator FAQ
Is Roth or traditional better?
It depends on your current tax rate versus your expected retirement tax rate, as well as your preferences for tax diversification.
Do Roth accounts have required distributions?
Roth IRAs generally do not have required minimum distributions during the original owner's lifetime, while traditional accounts often do. Rules vary by account type.
Do contribution limits change?
Yes. Contribution limits and income eligibility rules can change over time, so check current IRS guidance.
Can I split contributions between Roth and traditional?
Many savers split contributions to diversify tax exposure, but eligibility and limits depend on the account type.