Should I choose Roth or Traditional IRA?

Roth: if you expect to be in a higher tax bracket in retirement, you are early in career, or you want tax-free withdrawals. Traditional: if you are in a high tax bracket now and expect lower taxes in retirement, or need the deduction. Under $50,000 income: almost always Roth. Over $150,000: often Traditional.

Can I contribute to both Roth and Traditional IRA in the same year?

Yes, but the combined contribution across both cannot exceed the annual limit ($7,000 in 2026, $8,000 if 50+). Most people choose one or the other. If you cannot decide, split the contribution.

What is the Roth IRA income limit in 2026?

Direct Roth IRA contributions phase out between $150,000–$165,000 for single filers and $236,000–$246,000 for married filing jointly in 2026. Above these limits, use the backdoor Roth strategy: contribute to a non-deductible Traditional IRA then immediately convert to Roth.

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Investing & RetirementRetirement

Roth vs Traditional IRA Calculator — Which Wins?

Compare Roth and Traditional IRA outcomes side by side — accounting for your current tax rate, retirement tax rate, and time horizon.

Roth vs Traditional IRA Details

Annual Contribution$7,000

Years Until Retirement25

Current Tax Rate (%)22%

Expected Retirement Tax Rate (%)18%

Expected Annual Return (%)7%

Results

Live

Roth IRA Value at Retirement

$442,743

Traditional IRA Value (pre-tax)$567,620

Traditional IRA Value (after-tax)$465,448

Roth Advantage-$22,705

Roth IRA Value at Retirement$442,743

Traditional IRA Value (pre-tax)$567,620

Traditional IRA Value (after-tax)$465,448

How to use

Change one assumption at a time to see what moves the answer most.

Frequently Asked Questions

Everything you need to know.

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Why This Matters

The Roth vs Traditional decision is a tax bet. Roth wins if your retirement tax rate is higher than your current rate. Traditional wins if lower. Neither is universally better — but most young earners in moderate tax brackets benefit more from Roth.

How to Use It

1Enter your annual contribution and current tax rate
2Estimate your retirement tax rate
3Set your investment return and years to retirement
4See after-tax wealth comparison for both accounts

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